Broadcom to acquiring VMware for $61 billion – BROADCOM
The resulting combination of chip company and software manufacturer would be one of the most important technology providers for the cloud computing market. Broadcom, the semiconductor giant, said Thursday it had agreed to buy software company VMware in a $61 deal. Millions that would reshape the vast BISE market.
The deal, which would provide Broadcom with popular computing tools used by a variety of companies, would be the world’s second-largest proposed acquisition this year, after Microsoft’s $75 billion video bid. Game company Activision Blizzard according to Dealogic. While the combination would make
Broadcom a major player in cloud computing and data center technology, tens of billions of dollars are still spent each year on mergers among the many companies that make the technologies that power the Internet and large enterprise computer networks. The Broadcom deal is the latest in a series of ownership changes at VMware, a pioneering software company that helped develop some of the key technologies that are now commonly used in cloud computing.VMware has more than 500,000 customers worldwide and works with all major cloud providers, including Amazon, Microsoft and Google.
That makes VMware a valuable asset for Broadcom CEO Hock E.Tan. Broadcom will pay the equivalent of $138.23 per VMware share for the cash and stock deal, it said in a statement.That’s more than 40 percent higher than VMware’s stock price before rumors of a deal circulated last weekend. VMware “delivers the installation for most of the world,” said Gartner analyst Dennis Smith in an interview. It helps manage more enterprise information than the combined public clouds from Amazon, Microsoft, and Google, all of which struggle to get more of that data into their services, Smith said.