📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Broadcom Set To Finalize $61 Billion Merger With Vmware

Published 30/10/2023, 14:34
MSFT
-
XLNX
-
VMW
-
AVGO
-
TWTR
-

Broadcom (NASDAQ:AVGO) Inc. is on track to finalize its $61 billion acquisition of VMware (NYSE:VMW) Inc., a pioneer in virtualization programs, before the expiration of their merger agreement. This development comes despite potential interruptions from Chinese regulatory authorities, according to a joint communique issued by the firms.

The companies reassured investors that there are no barriers under US merger laws for this deal and that they have met all foreign investment control prerequisites in necessary jurisdictions. The acquisition has received global legal authorization in several countries, but it is still awaiting approval from China.

In the meantime, shareholders have the option to opt for cash or 0.2520 shares of Broadcom stock. The offer represents a 44% premium on VMware's closing price on May 20, 2022, which had dropped below the offer price earlier.

Broadcom's CEO, Hock Tan, plans to integrate VMware into his software portfolio. This move follows Broadcom's previous acquisitions of CA Technologies and Symantec Corp (NASDAQ:GEN).'s corporate security business.

The acquisition of VMware, established in 1998, marks a record-setting transaction for a chipmaker, surpassing Advanced Micro Devices (NASDAQ:AMD) Inc.'s $34.1 billion takeover of Xilinx Inc (NASDAQ:XLNX). This deal was made possible through a go-shop clause and is among notable transactions in 2022 such as Microsoft Corp (NASDAQ:MSFT).'s Activision Blizzard Inc (NASDAQ:ATVI). buyout, Vista Equity Partners' Citrix Systems Inc (NASDAQ:CTXS). purchase, and Elon Musk's acquisition of Twitter Inc (NYSE:TWTR).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.