Broadcom is in talks to acquire VMware for $60 billion | ECONOMY

Lima, 23/05/2022 05:36 p.m.

Broadcom Inc is in talks to acquire cloud services provider VMware Inc in a $60 billion deal that would further diversify the chipmaker’s operations, people familiar with the matter said.

Broadcom would pay regarding $140 a share in cash and stock for VMware, the sources said, a 46% premium to VMware’s stock value on Friday.

If negotiations are successful, the deal might be announced on Thursday, when VMware is scheduled to report its quarterly results, the sources added.

Bloomberg News had first reported the deal talks on Sunday, while the Wall Street Journal published the terms of the acquisition on Monday.

Broadcom and VMware did not immediately respond to Archyde.com requests for comment.

Shares of VMware closed Monday up 25% at $119.43, while shares of Broadcom closed down 3% at $526.36.

Broadcom makes a number of chips used in products ranging from mobile phones to telecommunications networks. Acquiring VMware would give it access to data centers where VMware’s technology is a mainstay for cloud customers.

“We believe an acquisition of VMware would make strategic sense, consistent with Broadcom’s focus on deepening its enterprise infrastructure software strategy.Wells Fargo analysts noted.