San Jose-based Broadcom Inc., which has more than 1,000 workers at its Irvine operations, says a memo claiming the Department of Defense is probing its pending deal for CA Technologies is fake.
The memo indicates the Committee on Foreign Investment in the United States, or CFIUS, which reviews some foreign transactions involving U.S. companies, is investigating the $19 billion deal.
CFIUS is an interagency committee that includes defense department representatives. It typically doesn’t talk publicly about its work, and hasn’t commented on whether it issued the document circulating at the U.S. Capitol or if the memo might have been forged.
Since Broadcom (Nasdaq: AVGO) moved its headquarters this year from Singapore to the U.S., the chipmaker says the deal is outside of the committee’s purview.
“Broadcom and CA Technologies are both American companies, and there is no basis in fact or law for CFIUS review of our pending transaction,” Broadcom said in a statement.
Nevertheless, Sen. Rand Paul, R-Ky., has called for an investigation.
The deal would add business software, such as project management and IT-security products, to Broadcom’s suite, most notably communications chips that power Wi-Fi, Bluetooth, GPS and other applications in mobile devices, as well as those used in data centers and set-top boxes.
The transaction, which has earned antitrust and CA Technologies (Nasdaq: CA) shareholder approvals, is scheduled to close in the fourth quarter.
Broadcom has already had one blockbuster deal squashed by the government this year.
In March, President Donald Trump used a presidential order to kill its unsolicited $121 billion bid for San Diego-based rival Qualcomm Inc., citing national security concerns related to 5G development.
The Trump administration said it was concerned that if Broadcom acquired Qualcomm, it would invoke deep 5G research and development cuts. If that happened, it contended, the U.S. would lose the lead to China in the race for 5G supremacy, and in doing so compromise national security.
Cylance Scholarships
Fast-growing software security maker Cylance Inc. launched a 12-week online program for security professionals to build leadership skills in navigating rapidly evolving cybersecurity issues.
Last month at its first user conference in Huntington Beach, the Irvine-based company awarded 20 full scholarships worth $1,995 each for its Enterprise Cybersecurity Leadership program.
About 375 people attended Prevent 2018 at Hilton Waterfront Resort, where they heard customer panels on best practices and lessons learned, and keynote speeches on security, including one by Frank Abagnale, who penned “Catch Me if You Can,” which was made into a 2002 feature film directed by Steven Spielberg and starring Leonardo DiCaprio and Tom Hanks.
Cylance Chief Security and Trust Officer Malcolm Harkins said the timing was right for the conference, which could become an OC mainstay.
“We were starting to see the demand from our customers,” he told the Business Journal at the event. “We wanted to bring them together, and focus on their needs, hear their input, and use that to shape our strategies. It will definitely be a springboard to other events like this.”
The company recently raised $120 million in a venture round led by previous investor Blackstone Tactical Opportunities, and released its first software product targeting consumers.
Cylance grew revenue more than 90% in its last fiscal year to over $130 million. It has more than 4,000 customers, including over 20% of the Fortune 500.
A $100 million Series D round led by Blackstone in 2016 catapulted the company into unicorn status, with a valuation more than $1 billion.
Soccer Goes Digital
Four OCers will play on Orange County Soccer Club’s professional video gaming team.
Mike Culp and Allen Medina of Costa Mesa, Anaheim’s Vuj Do, and Jose Hernandez in Irvine will compete in the Virtual Pro Gaming league, a first in U.S. professional soccer and the United Soccer League, which sits behind Major League Soccer in the sport’s pecking order stateside.
The VPG has more than 100,000 players and 2,200 11-member teams that compete in Electronic Arts’ Fédération Internationale de Football Association franchise.
FIFA has drawn more than 20 million players this season, including OC Soccer Club owner and President James Keston, who bought the team in 2016, reportedly for more than $5 million, when it was called the Orange County Blues.
The club moved into a new stadium last year at Orange County Great Park in Irvine. It played its first home playoff game on Oct. 20 after clinching the Western Conference Championship last week.
OC is one of the hottest esports markets in the country, buoyed by Irvine-based Blizzard Entertainment Inc., the Esports Arena in Santa Ana, and Kingston Technology Co.
