Broadcom to Acquire VMware in $61B Deal

American technology and infrastructure company Broadcom has agreed to acquire VMware, the San Jose-based cloud computing and virtualization technology company, in one of the largest purchases of its kind in history. The deal, worth roughly $61 billion, supports Broadcom’s efforts to become a major player in the corporate software landscape. Shareholders of VMware can choose between $142.50 per share in cash or 0.2520 shares of Broadcom stock for each VMware share they currently hold, according to a statement released by Broadcom. The company will also assume $8 million in net debt from VMware.

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The acquisition by Broadcom is the largest ever for a semiconductor maker and continues the spending spree orchestrated by Chief Executive Officer Hock Tan. Most recently, the company acquired corporate software maker CA Technologies in 2018 and Symantec Corp.’s enterprise security business in 2019, helping to make Broadcom one of the most diversified companies in the field. The deal joins Microsoft’s purchase of Activision Blizzard for $69 billion and Elon Musk’s $44 billion offer for Twitter among the biggest acquisitions of 2022.