Broadcom Inc. agreed to buy cloud-computing company VMware Inc. for about US$61 billion in one of the largest technology deals of all time, turning the chipmaker into a bigger force in software.
VMware shareholders can choose to receive either US$142.50 in cash or 0.2520 shares of Broadcom stock for each VMware share, according to a statement on Thursday. The offer represents about a 44% premium to VMware’s closing price on May 20, the last trading day before Bloomberg News reported potential takeover talks.
The deal is the biggest takeover ever for a chipmaker and extends an acquisition spree for Broadcom Chief Executive Officer Hock Tan (picture), who has built one of the largest and most diversified companies in the industry. VMware bolsters Broadcom’s software offerings -- a key part of Tan’s strategy in recent years. He acquired corporate-software maker CA Technologies in 2018 and Symantec Corp.’s enterprise security business in 2019.