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Chipmaker Broadcom To Buy VMware In $61 Bn Deal

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

Photo Credit : Reuters

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 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 per cent, while those of VMWare were down nearly 1 per cent 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 per cent to the stock's close since the deal talks were first reported on May 22.

VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held.


(Reuters)


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