14 DAY TRIAL // What was initially just a rumor is now a sure thing, as Broadcom has officially announced that it’s buying VMware.
The money the company is going to pay as part of the deal is, well, impressive. Broadcom has agreed to pay no more, no less than $61 billion, which means this is the second largest acquisition that’s taking place this year.
The number one deal continues to Microsoft’s takeover of Activision, which is worth close to $69 billion.
Broadcom Software Group becoming VMWare
Broadcom has revealed that once the deal goes through, its software unit will be rebranded to VMware and therefore incorporate all the infrastructure and software products that are currently owned by VMware.
“By bringing together the complementary Broadcom Software portfolio with the leading VMware platform, the combined company will provide enterprise customers an expanded platform of critical infrastructure solutions to accelerate innovation and address the most complex information technology infrastructure needs,” Broadcom explained.
“The combined solutions will enable customers, including leaders in all industry verticals, greater choice and flexibility to build, run, manage, connect and protect applications at scale across diversified, distributed environments, regardless of where they run: from the data center, to any cloud and to edge-computing. With the combined company's shared focus on technology innovation and significant research and development expenditures, Broadcom will deliver compelling benefits for customers and partners.”
The deal is expected to close in the fiscal year 2023, and of course, it’s subject to regulatory approval.
“The transaction is expected to add approximately $8.5 billion of pro forma EBITDA from the acquisition within three years post-closing. Pro forma for each company's fiscal year 2021, software revenue is expected to account for approximately 49% of total Broadcom revenue,” Broadcom explained in the press release published this week.