Broadcom has acquired VMware in a massive $61 billion deal. The deal is a combination of cash and stock, with Broadcom assuming $8 billion in VMware debt.
According to Gartner data, VMware held the No. 1 position by market share in the global virtualization infrastructure software market in 2021, with 72% share and revenue of $5.9 billion.
VMware CEO Raghu Raghuram put the typical positive spin on the deal about the two companies being better together. “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,” he said in a statement, referring to those two other pieces Broadcom already owns.
The company has a go-shop provision in the deal, in which it has 45 days to find a better deal, although that seems unlikely at this price. Should that pass without any change, the deal will still be subject to regulatory oversight, which has not been a rubber stamp recently, especially with large numbers like this.