© Reuters. FILE PHOTO: The Broadcom Limited company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, 2021. REUTERS/Mike Blake/File Photo
2/2
(Reuters) -Broadcom Inc said on Thursday it will buy cloud service provider VMware (NYSE:) Inc in a $61 billion cash-and-stock deal to further diversify the chipmaker’s business into enterprise software.
Broadcom (NASDAQ:)’s shares were up 1.6%, while those of VMWare were down nearly 1% in premarket trading.
The acquisition is the second biggest announced globally so far this year, after Microsoft Corp (NASDAQ:)’s $68.7 billion deal to buy video game maker Activision Blizzard Inc (NASDAQ:) in January.
Each VMware shareholder will get $142.50 per share, resulting in a premium of over 48% to the stock’s close since the deal talks were first reported on May 22.
VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held.
Be the first to comment