We’re excited to bring Transform 2022 back to life on July 19th and virtually July 20-28. Join AI and data leaders for sensible conversations and exciting networking opportunities. Register today!
Semiconductor giant Broadcom has confirmed plans to acquire cloud computing and virtualization tech company VMware in a 61 billion deal.
The deal, which follows days of rumors and speculation, represents one of the largest technology acquisitions ever, sitting slightly lower than Dell’s $ 67 billion EMC purchase and Microsoft’s proposed $ 69 billion Activision Blizzard acquisition.
Broadcom has not shied away from large-dollar acquisitions as part of its growth strategy, investing a combined માટે 30 billion in Symantec’s enterprise unit and mainframe software company CA Inc. In the last four years.
While Broadcom is best known for its chips, power devices such as smartphones, PCs and networking equipment, bringing VMware under its wing will help it diversify and become the “world’s leading infrastructure technology company”, according to a press release.
What this means, essentially, is that Broadcom is expanding beyond chips and focusing on the enterprise software sector, which – in the case of VMware – offers a very attractive recurring revenue model. Indeed, VMware has played a key role in the transition to the cloud world of technology, providing software that powers multi-cloud management, infrastructure, networking, security and more.
“Based on our proven track record of successful M&A, this transaction connects our leading semiconductor and infrastructure software businesses with reputable pioneers and innovators in enterprise software as we deliver what we can deliver to customers as a leading infrastructure technology company.” Broadcom President and CEO Hawk Tan said in a statement.
Broadcom said it plans to buy all remaining VMware shares as part of a cash-and-stock transaction – which is owned by a majority of Michael Dell and Silver Lake – and offers a 44% premium on the last VMware common stock closing price. Friday.
Refresh for the latest news, updates
Venturebeat’s mission Digital Town Square is about to become a place for technical decision makers to gain knowledge about the changing enterprise technology and practices. Learn more about membership.