Broadcom acquires VMware for $69bn amid global regulatory scrutiny
By Seun Johnson
In what is considered a breakthrough feat in the technology sector, Broadcom, one of the leading computer chip manufacturers in the world, has completed the acquisition process of California-based cloud computing firm, VMware at a sum of 69 billion dollars.
The company paid $61 billion in cash and stock for VMware and took on $8 billion of its debt, totaling $69billion and making it the biggest technology deals in the world.
In a press statement issued to confirm the development, the acquisition process which underwent a rigorous scrutiny from the regulator got the approval of Chinese with certain restrictions.
The statement reads in part, “Broadcom has received legal merger clearance in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, the United Kingdom, and foreign investment control clearance in all necessary jurisdictions. We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams.”
The deal is, however, coming after a meeting between the American president, Joe Biden and Chinese president, Xi Jinping held at the Apec summit in the United State a week ago.
While Broadcom, which is based in San Jose, Califonia, USA, plays a major role in shaping the internet’s infrastructure with its products widely utilized in data centres, cloud services, and network infrastructure, VMware on the other hand, specializes in virtualization and cloud computing software, enabling corporations to securely connect local networks with public cloud access.
Expressing his excitement on the success of the deal, President and Chief Executive Officer of Broadcom, Hock Tan said the combined efforts are expected to create private and hybrid cloud environments, allowing users to run applications seamlessly across different platforms.
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