US semiconductor manufacturer Broadcom is in talks to acquire cloud and virtual services software developer VMware. They write about it Bloomberg i The Wall Street Journal citing sources familiar with the situation. According to them, the negotiations are at an advanced level, so the deal could be announced in the near future, but the parties have not yet reached a final agreement, and the deal may still fall apart. The cost of VMware is estimated at $40 billion, so if the parties agree, this transaction could become one of the largest since the beginning of the year. The companies themselves did not comment on the information about the negotiations.
Capitalization of Broadcom is estimated at $220 billion. In recent years, it has been actively making acquisitions – in 2018 it bought software developer CA Technologies for $18.9 billion, and in 2019 – a corporate division Symantec for $ 10.7 billion. According to experts, the acquisition of VMware would strengthen Broadcom’s position in the enterprise software market and help further diversify its business. VMware was founded in 1998 and has changed hands several times since then. In 2015, it was acquired by Dell Corporation, and in 2021 singled out VMware into a separate company.
Shares of VMware rose today, May 23, by 20%. Broadcom shares fell 4.4%.
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