Processor maker Broadcom to buy cloud provider VMware for $61 billion

The acquisition will help Broadcom gain a foothold in the enterprise software market.

  • The deal was announced by Broadcom. In addition to the $61 billion purchase, the company will also take on $8 billion of VMware’s net debt.
  • Following the deal, Broadcom will merge the developer with its Broadcom Software division and rebrand it as VMware. According to CNBC, this is one of the biggest technology deals of all time.
  • The acquisition of VMware will help Broadcom strengthen its position in the enterprise software market and diversify its business, which is now focused on designing and selling processors, according to CNBC.
  • In 2018, Broadcom bought software developer CA Technologies for $18.9 billion, and in 2019, the corporate arm of Symantec for $10.7 billion.
  • VMware was founded in 1998 and has changed owners several times. In 2015, it was acquired by computer equipment manufacturer Dell, and in 2021, VMware was spun off into a separate company.

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