Chipmaker Broadcom to buy VMware in $61 billion deal -Breaking
© Reuters. FILE PHOTO – The Broadcom Limited logo can be seen outside an office building in Irvine, California. This was taken on March 4, 2021. REUTERS/Mike Blake/File Photograph
Broadcom Inc has announced that it will purchase cloud provider VMware (NYSE 🙂 Inc. The $61 billion cash and stock transaction is intended to diversify Broadcom’s enterprise-software business.
Broadcom’s shares rose 1.6% in premarket trading, while VMWare was down almost 1%.
After the acquisition of Second World Bank, this is the largest announced global transaction so far in 2011. Microsoft Corp (NASDAQ:). In January, Activision Blizzard Inc. (NASDAQ:), made a $68.7 Billion deal to purchase videogame maker Activision Blizzard Inc.
VMware shareholders will receive $142.50 each share. This is a 48% premium to the closing stock price since May 22, when the deal was first announced.
For each VMware share, shareholders of VMware will receive $142.50 cash and 0.2520 shares in Broadcom common stock.