Chipmaker Broadcom has agreed to acquire virtualisation firm VMware for approximately $61bn in cash and stock.
According to Security Week, VMware shareholders can receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share. Broadcom – which obtained $32bn in financing from a collection of banks to help fund the deal – will also assume $8bn of VMware net debt.
Following the completion of the deal, Broadcom Software Group will rebrand and operate as VMware, with its infrastructure and security software solutions becoming part of its portfolio.
VMware’s security portfolio currently includes solutions for security operations centers, cloud environments, applications and networks.
The deal is expected to be completed in Broadcom’s fiscal year 2023.
Broadcom Software Group president Tom Krause said, “VMware has long been recognized for its enterprise software leadership, and through this transaction we will provide customers worldwide with the next generation of infrastructure software. VMware’s platform and Broadcom’s infrastructure software solutions address different but important enterprise needs, and the combined company will be able to serve them more effectively and securely.”
VMware, a software provider for digital infrastructure, has agreed to acquire cloud-native endpoint protection platform Carbon Black in a deal worth $2.1bn.
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