Broadcom completes $69bn acquisition of VMware to enhance cloud computing solutions
Broadcom Inc. (NASDAQ: AVGO), a leader in global technology specializing in semiconductor and infrastructure software solutions, has officially announced the completion of its acquisition of VMware, Inc. Following this acquisition, VMware’s common stock will no longer be traded on the New York Stock Exchange. This significant development marks a new era for both companies in the infrastructure technology sector.
Strategic Focus of Broadcom Post-Acquisition of VMware
Hock Tan, President and CEO of Broadcom, expressed enthusiasm about welcoming VMware into the Broadcom family. The primary focus post-acquisition is to aid enterprise customers in developing and modernizing their private and hybrid cloud environments. Broadcom aims to invest in VMware Cloud Foundation and expand its services, including VMware Tanzu, Application Networking, Advanced Security services, and VMware Software-Defined Edge. These investments are intended to enhance cloud and edge environments for global enterprises.
Broadcom and VMware Merger Finalized, Transforming Enterprise Cloud Services
Details of the Broadcom-VMware Deal and Future Prospects
The deal, initially announced in May 2022, involved Broadcom acquiring cloud computing and virtualization technology firm VMware in a cash-and-stock transaction valued at approximately $61 billion, along with assuming $8 billion of VMware’s net debt. Following the merger, the Broadcom Software Group will be rebranded as VMware, integrating Broadcom’s existing infrastructure and security software solutions.
Shareholders of VMware had the option to receive cash or shares in Broadcom, resulting in current Broadcom shareholders owning about 88% and VMware shareholders approximately 12% of the combined entity. This merger is expected to create a robust platform of critical infrastructure solutions for enterprise customers, facilitating faster innovation and addressing complex IT infrastructure needs.
The acquisition of VMware by Broadcom Inc. is a significant move in the technology industry, poised to reshape the landscape of enterprise cloud computing and virtualization services.