Broadcom is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom’s category-leading product portfolio serves critical markets including data center, networking, software, broadband, wireless, storage and industrial. Their solutions include data center networking and storage, enterprise and mainframe software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.
In a latest financial release by the company, they have announced to acquire VMware for a mega deal of $61 billion in cash and stocks. It would be one of the largest tech acquisitions to date.
VMware, founded in 1998, is the leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control and working on disruptive technologies, like edge computing, AI, blockchain, machine learning, Kubernetes, and more.
This buy-out would fold Broadcom's software division into VMware and create a theoretical powerhouse that helps companies run apps in all sorts of environments, including "any" cloud service.
The proposed union would have Broadcom take on $8 billion of VMware's debt. The deal should close sometime in Broadcom's fiscal 2023 (no later than early calendar 2023) if regulators approve the deal. Notably, though, VMware isn't yet locked into the merger — a "go-shop" clause will let it consider and even solicit deals from other companies through July 5th.
Michael Dell, Chairman of the VMware Board, said,
Together with Broadcom, VMware will be even better positioned to deliver valuable, innovative solutions to even more of the world's largest enterprises. This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside
If the purchase goes forward, it will represent one of the larger tech acquisitions so far. Following the closing of the transaction, the Broadcom Software Group will rebrand and operate as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of an expanded VMware portfolio.