Broadcom is acquiring VMware for $61 billion in a cash and stock deal which will be one of the biggest tech acquisitions ever.
This massive deal for VMware is intended to help Broadcom’s software division.
Broadcom plans to rebrand its Broadcom Software Group as VMware and integrate its existing infrastructure and security software capabilities under VMware.
VMware CEO Raghu Raghuram said: “Combining our assets and talented team with Broadcom’s existing enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player.”
VMware and Broadcom might form a powerful alliance focused on enterprise infrastructure and cloud computing.
The agreement, which is anticipated to finalize in Broadcom’s fiscal year 2023, has the support of Michael Dell, who owns almost half of VMware with Silver Lake.
Broadcom is well-known for its chip business, which designs and manufactures semiconductors for modems, Wi-Fi, and Bluetooth chips used in a variety of products.
In 2018, the business paid $18.9 billion for CA Technologies, a developer of security and database software, then in 2019, it paid $10.7 billion for Symantec’s enterprise security arm.
It sold the Symantec company to Accenture for an unknown price less than a year later.
VMware focuses on cloud computing and virtualization technologies and was owned by Dell until it was spun off last year.
Source: The Verge