Broadcom buys cloud company VMware for $61 billion in 2nd-largest tech deal of 2022

Thursday’s agreement is believed to be the second-biggest tech acquisition in the U.S. this year, at the rear of only Microsoft’s practically $70 billion offer with Activision Blizzard in January. File Picture by John G. Mabanglo

May perhaps 26 (UPI) — Laptop or computer chip and software producer Broadcom introduced the second-major technology offer of 2022 on Thursday — an acquisition of cloud company VMware for extra than $60 billion.

The money-and-inventory deal has by now been accepted by the boards of both equally corporations and would consist of about $8 billion in VMware personal debt. VMware’s shareholders however should indication off on the acquisition, which is really worth about $61 billion.

Broadcom said it will rebrand as VMware once the offer closes and include infrastructure and protection software package as component of the new manufacturer.

The measurement of Thursday’s offer is next this calendar year only to Microsoft’s acquisition of Activizion Blizzard in January. Photograph by John Angelillo/UPI

“VMware’s system and Broadcom’s infrastructure program remedies address unique but vital company requirements,” Broadcom President Tom Krause claimed in a assertion Thursday.

If it’s authorized by regulators, the offer is anticipated to close in fiscal 2023.

Thursday’s arrangement is considered to be the 2nd-largest tech acquisition in the United States this 12 months, driving only Microsoft’s practically $70 billion offer with Activision Blizzard in January.