Broadcom acquires VMware for 53 billion euros

Broadcom takes over VMware permanently. It pays 53 billion euros for this in both cash and shares. Broadcom is also taking over 7.5 billion euros in debt from VMware. Broadcom’s software branch will continue under the name VMware in the future.

The companies report the takeover and mention an amount of 61 billion dollars, converted about 53 billion euros, in a division of 50 percent cash and 50 percent shares. Earlier, there were rumors that Broadcom was in acquisition talks with VMware, but the price was then estimated at about 40 billion dollars. Several major shareholders of both companies have now approved the acquisition. Shareholders can choose whether to switch their shares to cash or Broadcom shares. Broadcom expects to close the transaction in the upcoming fiscal year ending October 31, 2023.

Broadcom Software Group, the company’s software arm, will continue under the name VMware in the future, the companies write. Broadcom’s existing infrastructure and security software will come under the VMware umbrella. Broadcom says it plans to continue building software infrastructure that better complements Broadcom’s hardware. The companies have not yet mentioned concrete plans.