(Broadcom) Broadcom has confirmed it will acquire cloud software firm VMware for $69 billion, including the outstanding debt.
VMware shareholders can choose to receive $142.50 cash in the deal or 0.2520 shares of Broadcom stock for each share they own in the software company. The offer represents a 33% premium to the value of the company as of last week.
The deal happens when Broadcom seeks to become a diversified tech company with offerings in chips and cloud computing. Broadcom’s attempt to acquire chipmaker Qualcomm was blocked by former US President Donald Trump in 2018.
VMware’s deal happens after VMware stock crashed to about half from its peak in 2019. The stock also fell by 20% this year before speculations of Broadcom emerged.
VMW: NYSE is up +2.43%, AVGO: NASDAQ is up +3.01%.
