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Chipmaker Broadcom to buy cloud services firm VMware in $61-bn deal

VMware shareholders will get $142.50 per share under the purchase, resulting in a premium of nearly 49% to the stock's close on May 22, when talks of the deal were first reported

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(Photo: Bloomberg)

Reuters
Broadcom Inc said on Thursday it will acquire cloud computing company VMware Inc in a $61 billion cash-and-stock deal, the chipmaker's biggest and boldest bid to diversify its business into enterprise software.

The acquisition is the second biggest announced globally so far this year, trailing only Microsoft Corp's $68.7 billion deal to buy video game maker Activision Blizzard Inc.

Broadcom's offer price of $142.50 per VMware share represents a premium of nearly 49% to the stock's last close, when talks of the deal were first reported on May 22. Broadcom will also assume $8 billion of VMware's net debt.

The

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: May 26 2022 | 5:08 PM IST

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