Broadcom Ready to “Hit the Ground Running” With VMware Acquisition and Integration

In May 2022, semiconductor technology company Broadcom announced its plan to acquire virtualization company VMware in a deal worth $61 billion. Now, before the deal is completed, leaders from both companies are actively preparing for integration, hoping to “hit the ground running,” according to a letter from Broadcom Chief Executive Officer Hock Tan and Tom Krause, President of Broadcom’s Software Group. Citing the company’s history of successful acquisitions and integration, the letter was meant to reassure VMware employees that the transition will be seamless—and painless.

Become a Subscriber

Please purchase a subscription to continue reading this article.

Subscribe Now

As a result of the acquisition, Broadcom’s software division will be rebranded as VMware, with complete integration of the two. Broadcom also told investors that it plans to increase VMware’s profits from $4.5 billion to $8.5 billion per year in the coming years, an 80% increase. However, some VMware employees are questioning their futures, as Broadcom intends to eliminate redundancies across IT, finance, human resources, and other departments—a sign that layoffs might be inevitable. At the same time, Broadcom hopes to retain VMware’s most valuable talent to assure a smooth transition and a fruitful future.