Thursday, May 26, 2022

Broadcom Acquires VMware For $61 Billion

Semiconductor giant Broadcom--which still has extensive operations in Orange County--said this morning that it will pay $61 billion in cash and stock for VMware, the developer of enterprise virtualization software. According to Broadcom, the acquisition will help it accelerate its software scale and growth opportunities. Broadcom's existing Software Group will be rebranded and operate as VMware. Broadcom said the acquisition will add $8.5 billion of pro forma EBITDA from the acquisition within three years post closing. VMware's software is used in the enterprise, allowing computer servers to exist as virtual devices in the cloud.