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Home Enterprise

Broadcom To Acquire VMware For US$61 Billion

The acquisition is now one of the biggest tech deals ever.

by John Law
May 27, 2022
Broadcom

(Image source: 9to5Mac.)

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Broadcom announced that it will be acquiring the cloud computing and virtualisation technology firm, VMware, lock, stock, and barrel for US$61 billion (~RM267 billion). The acquisition is a significant one, as it now stands as one of the largest acquisitions in the tech world, after Dell’s EMC deal and Microsoft’s purchase of Activision Blizzard.

The company says that, following the completion of the transaction, its self-named software group will be rebranded and begin operating under the VMware name, as well as incorporate all of its existing infrastructure and security software solutions into the latter’s portfolio. As pointed out by The Verge, Broadcom’s acquisition could serve as a boon, particularly in the enterprise and cloud computing sectors.

“VMware has long been recognized for its enterprise software leadership, and through this transaction we will provide customers worldwide with the next generation of infrastructure software. VMware’s platform and Broadcom’s infrastructure software solutions address different but important enterprise needs, and the combined company will be able to serve them more effectively and securely,” Tom Krause, President of Broadcom Software Group, said regarding the acquisition.

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(Image source: The Verge.)

This isn’t the first time Broadcom has been in the news, primarily for its major purchase. Back in 2018, the manufacturer, renowned for its designing and manufacturing of semiconductors for modems, Wi-Fi, and Bluetooth chips, was cast into the limelight after the US government blocked its efforts in acquiring another major semiconductor maker, Qualcomm. For that matter, this isn’t the company’s first major acquisition; in 2019, the company bought out Symantec’s entire enterprise security unit for US$10.7 billion (~RM46.9 billion)

Broadcom’s acquisition of VMware is expected to fully be completed during the company’s 2023 fiscal year, should the deal between the two entities be agreeable.

(Source: Broadcom, The Verge)

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