If the sale goes through, it will be one of the largest IT deals ever, trailing only Microsoft’s $69 billion acquisition of Activision Blizzard and Dell’s $67 billion acquisition of EMC (a deal that included VMware). Broadcom said today that it will purchase VMware in a cash-and-stock deal worth roughly $61 billion. Broadcom would also take up VMware’s $8 billion debt as part of the purchase.
Broadcom is well known for creating and producing semiconductors such as Wi-Fi, Bluetooth, and GPS chips, which are used in many smartphones and routers.
VMware is a company that develops cloud computing and virtualization technology. The company was founded in 1998 and was purchased by EMC in 2004.
When Dell purchased EMC in 2016, it became a part of the company before spinning off to become a standalone company again last year.
If the transaction is completed, Broadcom intends to rebrand its Broadcom Software Group as VMware and incorporate its existing infrastructure and security software portfolio into VMware.
Michael Dell, who personally owns more than 40% of the outstanding Dell stock, and global private equity firm Silver Lake, which owns the remaining 10%, have both approved the deal.
The deal is expected to close during Broadcom’s fiscal year 2023, which begins in November 2022.
It’s worth noting that Broadcom attempted to acquire Qualcomm for more than $100 billion a few years ago. The acquisition was blocked by former President Donald Trump, who cited national security concerns.
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