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2nd biggest deal in 2022! Broadcom to buy VMware in $61 billion deal
Broadcom Inc is buying cloud service provider VMware Inc in a $61 billion deal to further diversify the chipmaker`s business into enterprise software.
Highlights
- The acquisition is the second biggest announced globally so far this year.
- Broadcom’s shares were up 1.6%.
- Shares of VMWare were down nearly 1% in premarket trading.
New Delhi: Broadcom Inc said on Thursday it will buy cloud service provider VMware Inc in a $61 billion cash-and-stock deal to further diversify the chipmaker`s business into enterprise software. Broadcom’s shares were up 1.6%, while those of VMWare were down nearly 1% in premarket trading.
The acquisition is the second biggest announced globally so far this year, after Microsoft Corp`s $68.7 billion deal to buy video game maker Activision Blizzard Inc in January.
Each VMware shareholder will get $142.50 per share, resulting in a premium of over 48% to the stock`s close since the deal talks were first reported on May 22. Also Read: iPhone feature saved a woman from sexual assault, check how to activate it on your Apple phone
VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held. Also Read: Sensex halts 3-day decline, rebounds over 500 points amid F&O expiry