Semiconductor maker Broadcom has agreed to acquire cloud and virtualization company VMware for $61 billion.
– As a result, VMware shareholders will receive a choice of $142.50 per share in cash or 0.252 shares of Broadcom.
– The acquisition is the second-largest this year after Microsoft’s acquisition of Activision Blizzard ($68.7 billion), and is comparable to Dell’s acquisition of EMC in 2015 ($67 billion).
– According to Forbes, the global chip shortage provided an opportunity for Broadcom to expand beyond hardware into an enterprise software business with higher profits, and VMware is a large company in this field.
