Broadcom to acquire VMware for $61 billion
San Jose's Broadcom, the tech company responsible for designing, developing, and supplying a huge swathe of the world's chips and semiconductors, announced a massive acquisition of cloud services company VMware, Inc., based in nearby Palo Alto, California. The move could have major implications in the technology and software realms, according to early reactions.
The cash-and-stock transaction values VMware at approximately $61 billion, based on the closing price of Broadcom common stock on May 25, 2022, said a joint press release from the companies. In addition, Broadcom will assume $8 billion of VMware net debt.
The buyer says the acquisition "advances Broadcom's strategy to build the world's leading infrastructure technology company," showing its ambitious nature. It also claims to "brings together two engineering-first, innovation-centric cultures," in the sort of industrial-tech gap-bridging we've grown familiar with over the past decade-plus.
Important details include that Broadcom Software Group will rebrand and operate as VMware. The new VMware, as part of Broadcom, will "offer enterprise customers greater choice and flexibility to address the most complex IT infrastructure challenges," the companies say.