Broadcom acquires VMware

VMware campus. © iStock.

In one of the largest tech acquisitions ever, Broadcom is purchasing VMware for 61 billion USD in cash and stocks. Broadcom is mostly known for designing and manufacturing chips for modems and for Wi-Fi and Bluetooth, used in smart phones, while VMware is a California-based company that specializes in virtualization software and cloud computing. In 2018, Broadcom purchased CA Technologies, a specialist in databases and security software, for 18.9 billion USD. The company is planning to merge its Broadcom Software Group software division with VMware, which will keep its name. “Combining our assets and talented team with Broadcom’s existing enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player,” says Raghu Raghuram, CEO of VMware. The deal, which should conclude in Broadcom’s 2023 fiscal year, is backed by Michael Dell, who shares approximately 50% of VMware with Silver Lake.

⇨ The Verge, Tom Warren, “Broadcom is acquiring VMware for $61 billion.”

2022-05-26