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The large image: If the transaction does undergo, it could be one of many greatest tech offers ever, simply behind Microsoft’s pending acquisition of Activision Blizzard for $69 billion and Dell’s EMC buyout for $67 billion (a deal that included VMware).
As we speak, Broadcom introduced plans to purchase VMware in a cash-and-stock transaction valued at roughly $61 billion. The deal would additionally end in Broadcom assuming VMware’s $8 billion in debt.
Broadcom is especially identified for designing and manufacturing a variety of semiconductor merchandise, together with Wi-Fi, Bluetooth, and GPS chips utilized in many smartphones and routers.
VMware is a cloud computing and virtualization know-how firm. The agency launched in 1998 and was acquired by EMC in 2004. It grew to become a part of Dell when the latter purchased EMC in 2016 earlier than spinning off to develop into a standalone firm once more final 12 months.
If the deal does undergo, Broadcom plans to rebrand its Broadcom Software program Group to VMware and incorporate its current infrastructure and safety software program portfolio as a part of VMware.
Michael Dell, who personally owns greater than 40 % of excellent Dell inventory, and world personal fairness agency Silver Lake, which owns one other 10 %, have each given their approval to the deal.
The acquisition is predicted to shut in Broadcom’s fiscal 12 months 2023, which begins in November 2022.
It is price mentioning that Broadcom additionally tried to purchase fellow chipmaker Qualcomm a couple of years in the past for over $100 billion. That deal fell via when former president Donald Trump blocked the acquisition, citing nationwide safety issues.
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