‘Acquisition of VMware by Broadcom was completed within two weeks’

The acquisition of VMware by Broadcom came within two weeks, reports business newspaper Financial Times. Both companies announced the planned multi-billion dollar acquisition last week.

The deal came about in talks between Broadcom’s Hock Tan and Michael Dell, who owns a 40 percent stake in VMware. claims FT based on own sources. Talks started two weeks before the companies announced the planned acquisition. A few days after the talks started, bankers arrived to work out the details.

Due to a rumor about the takeover talks last week, some new details were added to the contract. For example, VMware was given the ‘go-shop’ option to accept a higher bid from another party. It also put pressure on the negotiations.

Broadcom is planning to pay around 53 billion euros for VMware. Half of the amount is in cash, the other half in shares. The takeover is not yet complete; shareholders have yet to agree, while relevant authorities also need to approve the planned acquisition. Broadcom hopes the acquisition will be completed within a year and a half.