Chipmaker Broadcom announced that it has agreed to acquire cloud computing company VMware for $ 61 billion in a cash and stock deal. This is Broadcom’s most significant step towards diversifying its business into the enterprise software industry.
The deal offers $ 142.50 per VMware share, which corresponds to an approximate 49% premium over the stock’s closing price at the last close before reports of a deal began to fail on May 22. Shares of Broadcom increased 3% and VMware 2%. As part of the deal, Broadcom will also adopt VMware’s net debt of $ 8 billion.
Last year, Dell Technologies spun off VMware, of which Michael Dell owns 40%, and its financier Silver Lake, owns 10%, both of which voted in favor of the deal.
Broadcom’s offer of VMware was not requested, so the company will be allowed to solicit offers from other bidders for 40 days under its agreement with Broadcom.
Start a new Thread