Broadcom Inc., a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, and VMware, a leading innovator in enterprise software, today announced an agreement under which Broadcom will acquire all of VMware’s outstanding shares in a cash-and-stock transaction valued at approximately $61 billion.
Hock Tan, President and Chief Executive Officer of Broadcom, said, “Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company. We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders.”
VMware pioneered the software-defined data centre and was a pioneer in virtualizing networking and storage before transforming into a hybrid cloud and digital workplace leader. Today, VMware’s multi-cloud portfolio provides a digital foundation on which the world’s most important and complex workloads are built.
The Broadcom Software Group will rebrand and operate as VMware after the transaction closes, including Broadcom’s existing infrastructure and security software solutions as part of an expanded VMware offering.
Raghu Raghuram, Chief Executive Officer of VMware, said, “VMware has been reshaping the IT landscape for the past 24 years, helping our customers become digital businesses. We stand for innovation and unwavering support of our customers and their most important business operations and now we are extending our commitment to exceptional service and innovation by becoming the new software platform for Broadcom. Combining our assets and talented team with Broadcom’s existing enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player. Collectively, we will deliver even more choice, value and innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era.”
Tom Krause, President of the Broadcom Software Group, said, “VMware has long been recognized for its enterprise software leadership, and through this transaction we will provide customers worldwide with the next generation of infrastructure software. VMware’s platform and Broadcom’s infrastructure software solutions address different but important enterprise needs, and the combined company will be able to serve them more effectively and securely. We have deep respect for VMware’s customer focus and innovation track record, and look forward to bringing together our two organizations.”
The combined company will provide enterprise customers with an expanded platform of critical infrastructure solutions to accelerate innovation and address the most complex information technology infrastructure needs by combining the complementary Broadcom Software portfolio with the leading VMware platform. Customers will have more choice and flexibility to design, run, manage, connect, and protect applications at scale across diversified, dispersed settings, regardless of where they run: from the data centre, to any cloud, and to edge computing, thanks to the unified solutions. Broadcom will deliver compelling benefits for consumers and partners thanks to the combined company’s shared commitment on technology innovation and strong R&D spending.
Michael Dell, Chairman of the VMware Board, said, “Together with Broadcom, VMware will be even better positioned to deliver valuable, innovative solutions to even more of the world’s largest enterprises. This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside.”
