Chipmaker Broadcom confirms blockbuster $61bn deal for software firm VMware
US chipmaker Broadcom will purchase cloud firm VMware in a deal worth £48.5bn, making it one of the largest tech acquisitions of all time.
Broadcom is to snap up the Palo Alto-based company in a cash-and-stock transaction valued at $61bn, it was confirmed on Thursday.
The transaction is based on the closing price of Broadcom common stock on 25 May and comes in at more than was previously expected.
Earlier this week, Bloomberg had been reported that the firms were in talks for a deal worth around £39.7bn ($50bn).
The acquisition makes it one of the biggest tech deals in history, behind Microsoft’s imminent $69bn takeover of Activision Blizzard and Dell’s $67bn acquisition of EMC in 2016.
Broadcom is best known for wireless internet and Bluetooth chips, and is one of the world’s biggest tech firms, valued at around $210.6bn.
Headed by CEO Hock Tan, the company attempted to snap up Qualcomm for $103bn back in 2018, but withdrew the bid.
VMware was spun off from Dell last year, after Dell snapped up the firm amid its EMC takeover.
Dell’s very own Michael Dell is VMware’s biggest investor with a hefty 40 per cent stake in the firm, or roughly $16.2bn worth, followed by private equity titan Silver Lake with 10 per cent.