An agreement with Symantec would give Broadcom a "powerful combination": Jim Cramer

Jim Cramer of CNBC congratulated CEOs of software companies Symantec and Broadcom on Monday for orchestrating a successful July 4 contract.

The Wall Street commentator congratulated Rick Hill, Interim CEO of Symantec – who has been in office for less than two months – for turning the story of the cybersecurity firm into a crisis into a takeover candidate and creating value for shareholders. He also described Broadcom CEO Hock Tan as a "formidable supplier" in his efforts to extend his offerings beyond hardware.

"Fundamentally, [Tan’s] try to get a bigger share of the cake spent on information technology, "said the host to" Mad Money "." Symantec offers them a really excellent security offer, which they can sell alongside their chips, and I think this could be a powerful combination. "

For its part, Cramer has described this agreement as a "strange deal" for Broadcom, because it would act as the second software acquisition of the semiconductor giant, which counts Apple and Huawei among its major customers, in a short time lapse. Broadcom paid nearly $ 19 billion in cash to CA Technologies nearly a year ago.

The combination of Symantec with CA Technologies represents approximately 37% of Broadcom's total revenues.

"We know that the takeover of CA is going better than expected, in part because CA has shared a ton of large accounts with Broadcom," said Cramer.

David Faber, of CNBC, said Monday that the acquisition of Symantec, under negotiation, could cost between $ 25 and $ 30 per share, Cramer said. The Symantec stock fell in early June below the $ 18 mark following the departure of CEO Greg Clark, but recorded a 14% increase in the announcement of the transaction last week. Shares closed the session at $ 25.61, up more than 35% this year.

"We do not know how this is going to happen, we do not even know if the company will be sold, but you're already in a heck of a lot since Hill took over, and it's pretty much the same thing as the course with this guy, "said Cramer.

The deal could face headwinds if a competing bid for Symantec materializes. A few days after the announcement of the potential merger, Bloomberg announced that Clark was driving a competing bid with two buyout companies for the anitvirus provider.

Cramer said Hill, chairman of Marvell Technology's board of directors, represented "excellent management". As CEO of Novellus, semiconductor equipment manufacturer, Hill orchestrated a sale to Lam Research for $ 3.3 billion, a 28% premium.

"If Rick Hill can start a bidding war, it would be icing on the cake," Cramer said. "Even if it only concludes the deal with Broadcom, I think that is enough to guarantee it a place in the Hall of Fame of" Mad Money "."

With negotiations for the sale of Symantec already underway, Cramer said it was too late to buy the shares.

"Once you know that an agreement is being prepared, the arbitrageurs intervene, which is why the money has already been won easily," he said.

However, there is a case for owning Broadcom here, he added.

"The bottom line – when you find a bankable CEO who always seems to create value for his shareholders, stay with them," said Cramer.

Disclosure: The Cramer Charitable Trust holds shares in Apple, Lam Research and Marvell Technology.