October 2, 2022
Chipmaker Broadcom to buy VMware in $61 billion deal

Broadcom Inc said on Thursday it will acquire cloud computing company VMware Inc in a $61 billion cash-and stock deal, the chipmaker’s biggest and boldest bid to diversify its business into enterprise software.

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The acquisition is the second biggest announced globally so far this year, trailing only Microsoft Corp’s $68.7 billion deal to buy video game maker Activision Blizzard Inc.

The offer of $142.50 in cash or 0.2520 of a Broadcom share for each VMware stock represents a premium of nearly 49% to the stock’s last close before talks of the deal were first reported on May 22. Broadcom will also assume $8 billion of VMware’s net debt.

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