Broadcom Acquires VMware for $61 Billion


Broadcom has acquired VMware, a leader in cloud computing and operating systems simulation, in a deal worth $61 billion, making it one of the largest deals in technology company history ever. Electronic chips and semiconductors for modems, Wi-Fi, Bluetooth chips, etc.

The large acquisition of VMware comes to enhance Broadcom’s software-related business, and VMware was owned by Dell until the latter gave up the controlling share about 6 months ago, and the company has focused since its inception on developing virtual systems or virtual copies of operating systems, which is the market that dominates Accordingly, it also provides software solutions in the field of cloud computing, while major companies such as Apple, Google and others rely on Broadcom electronic chips in their devices, whether they are Wi-Fi or Bluetooth devices. 

Broadcom’s acquisition of VMware will give the former greater power to compete in the cloud computing and enterprise infrastructure market. Earlier in 2018, Broadcom acquired CA Technologies, which specializes in security software and databases, for $18.9 billion. . 

Broadcom expects to close VMware acquisition

After closing the acquisition, Broadcom plans to change its software brand from Broadcom Software Group to VMware, integrating existing security software solutions and infrastructure as part of VMware. VMware and its talented team working with Broadcom’s suite of enterprise software and solutions under the VMware umbrella results in an outstanding enterprise software provider. 

The deal, which is expected to close during the next year 2023, has the support of Michael Dell, who owns with Silver Lake about 50 percent of VMware, which is the third largest acquisition among technology companies ever, behind the acquisition of Activision Blizzard. Activision Blizzard that cost Microsoft $68.7 billion and Dell’s $64 billion acquisition of EMC earlier in 2015. 

Broadcom previously sought to acquire Qualcomm, a chip maker, for more than $100 billion, but the administration of former US President Donald Trump prevented the completion of the deal, citing national security concerns. 

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