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
