Global semiconductor giant Broadcom Inc. intends to purchase VMware, Inc., a leading enterprise software company. The boards of both companies agreed to the terms, whereby Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61 billion. Broadcom also will assume $8 billion of VMware net debt.
VMware provides multi-cloud services and workspace virtualization. For example, its VMware Horizon Cloud is available as a standalone, on-premises service, or hosted on IBM Cloud or Microsoft Azure. It’s VMware vSphere is a leading server virtualization software.
Following the closing of the transaction, the Broadcom Software Group will rebrand and operate as VMware, folding Broadcom’s existing infrastructure and security software solutions into the VMware portfolio, according to Broadcom. “[T]he combined company will provide enterprise customers an expanded platform of critical infrastructure solutions to accelerate innovation and address the most complex information technology infrastructure needs” and give customers “greater choice and flexibility to build, run, manage, connect and protect applications at scale across diversified, distributed environments, regardless of where they run: from the data center, to any cloud and to edge-computing.”
The companies anticipate the deal will close in 2023, should the acquisition get shareholder and regulatory approval.
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