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Cloud Service Provider VMware To Be Acquired By Broadcom Inc

VMware acquisition would help Broadcom to diversify its portfolio and would let them enter the software industry and core chip manufacturing industry.

Cloud Service Provider VMware To Be Acquired By Broadcom Inc

Semiconductor major and Chipmaker Broadcom Inc are planning to acquire VMware Inc, a provider of cloud services. Although planning is taking place, no concrete deal has been made, and further details are not available. 

Broadcom inc is a major supplier, manufacturer, developer, and designer of products relating to software and semiconductors. They also offer networking, broadband, software, and data centre services to their customers.  Broadcom is prominently known for its major transaction relating to space technology. 

VMware is also an American visualisation and cloud computing company. Their software is compatible with macOS, Linux, and Microsoft Windows. Their Enterprise Application Software known as VMware ESXi is compatible with any hardware server without the need for any pre-existing OS. 

This acquisition would help Broadcom to diversify its portfolio and would let them enter the software industry, which would be a step away from its core chip manufacturing industry. In the past 4 years, Broadcom acquired the security division of Symantec Corp for $10.7 billion and CA technologies for $18.9 billion. 

On Sunday, Bloomberg announced the deal. Both VMware and Broadcom decided to remain silent and did not comment any further. VMware is currently valued at $40.3 billion. 

Refinitv data suggests the largest shareholder in VMware is Michael Dell of Dell technologies holding a 40% stake in the company. The stakeholder has also given shares to the shareholders. 

The second-largest shareholder in VMware is Silver Lake, with 10% shares. The private equity firm incidentally has also invested in Broadcom.

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