Chipmaker Broadcom (AVGO) has announced that it will buy cloud computing service provider
VMware (VMW) in a $61 billion U.S. cash-and-stock deal.
The acquisition of VMware will enable Broadcom to expand its business into enterprise
software.
The purchase of VMware is the second biggest deal announced so far this year after Microsoft’s
(MSFT) $68.7 billion U.S. deal to acquire video game maker Activision Blizzard (ATVI) in
January.
Each VMware shareholder will receive $142.50 U.S. per share, resulting in a premium of over
48% to the stock's close since the deal talks were first reported on May 22.
VMware shareholders will get $142.50 U.S. in cash or 0.2520 shares of Broadcom common
stock for each VMware share they hold.
Broadcom's stock was up 1.6% while VMWare shares were down nearly 1% in premarket
trading on news of the acquisition.
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