It has been confirmed what the foreign press wrote a few days ago: Broadcom has agreed to pay և 61 billion to acquire VMware. Broadcom is a semiconductor giant, and VMware is one of the largest cloud computing companies.
Broadcom logoPhoto by Ken Voltaire | Dreamstime.com:
The transaction is proportionate և only one recent example exceeds it. In January, Microsoft announced that it would pay $ 69 billion for Activision Blizzard.
Broadcom is diversifying its business and becoming a cloud software giant. VMware is NOT a moving company, but it has big profit margins և reputable customers.
The boards of directors of the two companies agreed on the terms of the deal.
The offered price per share is 40% higher than the price of May 20, a day before the news of the imminent purchase appeared in the press. The development process is expected to be completed in the next financial year. Broadcom will own 88% of VMware and current shareholders of VMware will own 12%. Michael Dell, known for his computer company, owned 40% of VMware.
Broadcom Inc. was founded in 1961 and has 20,000 employees with an annual turnover of $ 27 billion.
Founded in 1998, VMware has 34,000 employees and annual revenue of approximately $ 12 billion.
VMware has changed hands several times, most recently with Dell Technologies Inc., is very active in virtualization software, but has also expanded into data center software.
Demand for cloud computing has grown exponentially over the past two years.
Broadcom has grown a lot in recent years, has made a number of significant achievements, and needs a wider presence in the corporate software market. Broadcom tried to buy SAS Institute Inc. in 2021, and in 2018 acquired CA Technologies for $ 19 billion. Hock Tan is the name of the CEO of Broadcom, who has so far taken over the company, a Malaysian-American billionaire who was the highest paid CEO in the US in 2017 with more than $ 100 million.
Broadcom is not a well-known name to the general public, but as a result of these achievements it has grown significantly, with a market value of more than $ 200 billion.
Broadcom is the company that tried (unsuccessfully) to buy Qualcomm in 2016 for 120 billion dollars.
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