Broadcom has shared a press release confirming its plan to acquire VMware in a deal worth approximately $61 billion in cash and stock. Assuming that it successfully closes, this deal is set to make history as one of the biggest technology acquisitions ever, being up there with other highly publicized pacts that include Microsoft’s proposed acquisition of Activision Blizzard for $69 billion and Dell’s $67 billion purchase of computer storage giant EMC in 2016. Broadcom believes that its acquisition of VMware will make it easier for the company to diversify beyond its core business of semiconductors to enterprise software, a segment that potentially offers even greater margins. The Broadcom Software Group will rebrand and operate as VMware if the transaction closes.
VMware, a leading provider of multi-cloud services for all apps, pioneered virtualization technology, an innovation that positively transformed x86 server-based computing. VMware then created the software-defined data center and played a leading role in virtualizing networking and storage, before evolving to become a hybrid cloud and digital workspace leader. Today, VMware’s multi-cloud portfolio, spanning application modernization, cloud management, cloud infrastructure, networking, security and anywhere workspaces, forms a flexible, consistent digital foundation on which the largest and most dynamic enterprises across industries build, run, manage, connect and protect their most important and complex workloads for the benefit of their customers.