image: Symantec

According to a piece from Bloomberg, chipmaker Broadcom is in advanced talks to acquire cybersecurity company Symantec. Shares of Symantec soared 22% on the Nasdaq in reaction to acquisition reports. Such deal will expand Broadcom’s reach into software, after an $18.9 billion acquisition of of CA Technologies last year and an abandoned bid to take-over rival chipmaker Qualcomm.

Symantec is the world’s largest vendor of cybersecurity software, selling to more than 350,000 organizations and 50 million persons [according to its annual report], but the company is facing increased competition, decreasing consumer interest in antivirus programs, and a financial probe that resulted in restated earnings among other challenges. The company’s stock slumped 33% last year but have gained roughly 17% this year.

A Symantec operations center image: Symantec

Broadcom was built on a series of big takeovers, starting with Avago’s $37 billion acquisition of the initial Broadcom before both companies were merged under the same brand. But the company’s acquisitions have stirred concerns from investors over CEO Hock Tan’s strategy being stretched too far.

Nevertheless, if Broadcom acquires Symantec, it wouldn’t be the first chipmaker to acquire a cybersecurity company. Intel also did that with a $7.7 billion acquisition of McAfee in 2011. But the company struggled with integrating McAfee’s software into its chip business, later selling a majority stake in the cybersecurity vendor to private equity firm TPG at a $4.2 billion valuation.

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