Sources say Broadcom is no longer in talks to buy SAS Institute

[ad_1]

Broadcom, a powerful semiconductor company built largely through acquisitions, was looking for a deal to bolster its presence in the enterprise software market. Photo: Justin Sullivan/Getty Images

Talks with Broadcom Inc. ended. AVGO -0.36% to buy SAS Institute Inc. After the founders of the close software company changed their minds about the sale, people familiar with the matter said.

The Wall Street Journal reported Monday that the companies were discussing a deal that would value SAS in the range of $15 billion to $20 billion, including any debt. In the wake of the report, Jim Goodnight and John Salle, who co-founded SAS decades ago and still run the company, changed their minds and decided not to sell to Broadcom, the people said. It is not clear if another SAS provider could emerge.

Some SAS employees saw the company as an odd fit for efficiency-focused Broadcom, some people familiar with the matter said. SAS is known for its tight-knit culture and has a sprawling North Carolina campus with amenities including a yoga studio and disc golf.

SAS in Cary, North Carolina, sells analytics, business intelligence, and data management software for enterprises. The company’s roots go back to the 1960s, when universities collaborated to analyze a set of agricultural data through a program called the Statistical Analysis System.

Broadcom, a powerful semiconductor company built largely through acquisitions, was looking for a deal to bolster its presence in the enterprise software market. The CEO, Huck Tan, said earlier this year that the company would consider buybacks and possibly debt repayments, if it did not make an acquisition by the end of the fiscal year. This usually ends in late October or early November.

Write to Cara Lombardo at [email protected]

Copyright © 2021 Dow Jones & Company, Inc. all rights are save. 87990cbe856818d5eddac44c7b1cdeb8

It appeared in the July 14, 2021, print edition as “SAS Calls Off Broadcom Talks.”

.

[ad_2]