Broadcom Will Acquire VMware for Approximately $61 Billion in Cash and Stock

Date:

Share post:

Image VMware Official twitter.com/vmwarenews

The purchase of  VMware will greatly enhance  the Broadcom  strategy to build the world’s leading infrastructure technology company, further enhancing the companies track record of acquiring established, mission-critical platforms.

The Broadcom Software Group will  rebrand and operate its name  as VMware

“The new VMware, as part of Broadcom, to offer enterprise customers greater choice and flexibility to address the most complex IT infrastructure challenges. Accelerates software scale and growth opportunities for Broadcom, with pro forma revenue of more than $40 billion, including 49% software revenue. Broadcom to target adding approximately $8.5 billion of pro forma EBITDA from the acquisition within three years post-closing.”  Source Broadcom Investor Relations.

Tom Krause, President of the Broadcom Software Group, said, “VMware has long been recognized for its enterprise software leadership, and through this transaction we will provide customers worldwide with the next generation of infrastructure software. VMware’s platform and Broadcom’s infrastructure software solutions address different but important enterprise needs, and the combined company will be able to serve them more effectively and securely. We have deep respect for VMware’s customer focus and innovation track record and look forward to bringing together our two organizations.”

Michael Dell, Chairman of the VMware Board, said, “Together with Broadcom, VMware will be even better positioned to deliver valuable, innovative solutions to even more of the world’s largest enterprises. This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside.”

The transaction is expected to add approximately $8.5 billion of pro forma EBITDA from the acquisition within three years post-closing. Pro forma for each company’s fiscal year 2021, software revenue is expected to account for approximately 49% of total Broadcom revenue.

Broadcom will host conference call today at 8:00 AM ET

spot_img

Related articles

Business: EA Sports reveals cover of College Football 25 game

Travis Hunter, Quinn Ewers and Donovan Edwards are the featured players on the cover of EA Sports College...

Business: OverActive completes acquisitions of KOI, Movistar

OverActive Media Corp. officially added an EMEA Valorant Champions Tour slot among a pair of acquisitions completed by...

Business: OverActive agrees to acquire KOI, Movistar Riders

OverActive Media Corp. added an EMEA Valorant Champions Tour slot among a pair of acquisitions announced by the...

Business: Excel Esports, Giants Gaming merging to form GIANTX

Britain's Excel Esports and Spain's Giants Gaming announced a planned merger Thursday to form GIANTX. The joint venture will...

FREE

Get the most important breaking news and analyses for Free.

Thank you for subscribing

Something went wrong.