Broadcom Says Will Buy VMware in $61 Billion Deal to Diversify Into Enterprise Software
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Broadcom said on Thursday it will buy cloud service provider VMware in a $61 billion (roughly Rs. 4,73,223 crore) cash-and-stock deal to further diversify the chipmaker’s business into enterprise software.

Broadcom’s shares were up 1.6 percent, while those of VMWare were down nearly one percent in premarket trading.

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The acquisition is the second biggest announced globally so far this year, after Microsoft’s $68.7 billion (roughly Rs. 5,32,955 crore) deal to buy video game maker Activision Blizzard in January.

Each VMware shareholder will get $142.50 (roughly Rs. 11,000) per share, resulting in a premium of over 48 percent to the stock’s close since the deal talks were first reported on May 22.

VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held.

© Thomson Reuters 2022

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