As we anticipated a few days ago, Broadcom is acquiring VMware with a cash and stock agreement from 61 billion dollars. It is one of the largest tech acquisitions ever, second only to Dell’s $ 67 billion EMC deal. Broadcom is known for its chip business, designing and manufacturing semiconductor modems, Wi-Fi and Bluetooth chips across multiple devices. With the new acquisition, therefore, the company increases the software business.
Broadcom acquires VMware and expands the software business
VMware is a company that focuses on cloud computing and virtualization technology, distinguishing itself as a market leader in the sector. And the same goes for Broadcom, which produces chips used by Apple, Google and many other industry giants. Given this, it is clear that a combination of these two companies will ensure great success for both, both in the enterprise infrastructure and in cloud computing. On the other hand, Broadcom has been working on expanding its business for some time.
In 2018, for example, the company acquired CA Technologies, security software and database makers, for $ 18.9 billion. And in 2019 it was the turn of the corporate security unit of Symantec, acquired for $ 10.7 billion and then resold to Accenture for an unknown amount. Then now it’s the turn of VMware, which the company is incorporating to further optimize its offer. “The combination of our resources and talented team with Broadcom’s existing enterprise software portfolio, all under the VMware brand, creates a remarkable enterprise software player,” he says. Raghu RaghuramCEO of VMware.
The deal, which is expected to close in fiscal year 2023, is backed by Michael Dell which, together with Silver Lake, owns approximately 50% of VMware. And if it does end, it would truly be one of the largest acquisitions in the industry. On the other hand, Broadcom previously failed to conclude the acquisition of Qualcomm for over $ 100 billion. But now it appears to have closed another equally important deal.