In one of the largest technology acquisitions ever recorded, semiconductor maker Broadcom is acquiring enterprise software solutions provider VMware in a cash-and-stock deal worth $61 billion.
The Broadcom Software Group will rebrand and operate as VMware, and Broadcom’s existing infrastructure and security software will be included in that rebranded and expanded VMware group.
According to a press release, the deal brings together Broadcom’s “complimentary” software portfolio with the leading VMware platform to provide enterprise customers with an expanded platform of critical infrastructure solutions to address complex IT needs.
Customers across all industry verticals will have greater choice and flexibility to build, run, manage connect and protect applications at scale across diverse, hybrid IT environments, the Silicon Valley-based companies say.
The transaction is Broadcom’s largest since it acquired enterprise security provider Symantec in 2019 for $10.7 billion. The firm also attempted a takeover of Qualcomm, but was blocked by former U.S. President Donald Trump in 2018.
In a statement, Broadcom President and CEO Hock Tan said the transaction combines the company’s semiconductor and infrastructure software business with an “iconic pioneer and innovator” in enterprise software.
“We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders,” Tan said.
Raghu Raghuram, CEO of VMware, said in a statement that combining the company’s assets with Broadcom’s enterprise software portfolio under the VMware brand will create a “remarkable enterprise software” provider.
“Collectively, we will deliver even more choice, value and innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era,” Raghuram said.
The combined company will be able to serve enterprises more effectively and securely, said Tom Krause, president of the Broadcom Software Group, in a statement.
“We have deep respect for VMware’s customer focus and innovation track record, and look forward to bringing together our two organizations,” Krause said.
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