About 61 billion USD deals in the technology industry
Chip maker Broadcom said it would buy software company VMware for $61 billion, making it the third-biggest deal in the technology industry.
This price is calculated based on the company’s share value as of May 25, and is paid in both cash and stock. Broadcom will also be responsible for VMware’s $8 billion in debt, the two companies announced on May 26.
This is the third largest acquisition in the history of the technology industry, after the $ 69 billion deal between Microsoft and Activision Blizzard Earlier this year, Dell’s deal to buy EMC for $67 billion in 2016.
Broadcom said the new move is intended to help the company provide a total solution for information technology infrastructure for its customers. Once completed, the company’s software business, Broadcom Software Group, will be renamed and operated under the VMware brand.
“The combination of our assets and teams with Broadcom’s existing software portfolio will create a remarkable enterprise solution. We will deliver more value, innovation and choice. in the increasingly complex ‘multi-cloud’ era,” said Raghu Raghuram, CEO of VMware.
Broadcom is famous for its chip products. Image: Broadcom
VMware is famous in the field of cloud computing and virtualization technology. According to a Gartner report, VMware is the largest player in the virtualization infrastructure software market in 2021, with 72% market share and $5.9 billion in revenue. The company is now independent, but was previously part of Dell after it acquired EMC, the owner of VMWare. Broadcom’s deal is said to have backing from founder Michael Dell himself.
Meanwhile, Broadcom is a chip company that designs and manufactures semiconductors for modems, Wi-Fi and Bluetooth chips in mobile devices. The company is famous for its cult mergers such as the purchase of CA Technologies in 2018 for $ 18.9 billion, and the purchase of Symantec in 2019 for $ 10.7 billion.
In 2018, Broadcom had an intention to buy back Qualcomm with the amount of more than 100 billion USD, but was prevented by US regulators because of national security concerns. Broadcom was then headquartered in Singapore, but later moved back to the US when the deal failed.
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at Blogtuan.info – Source: vnexpress.net – Read the original article here
