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Broadcom to Acquire VMware in $61 Billion Enterprise Computing Deal

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The resulting combination of chip company and software maker would be one of the most important suppliers of technology to the cloud computing market.
Broadcom, the semiconductor giant, said on Thursday that it had agreed to buy the software company VMware in a transaction valued at $61 billion. The deal would furnish Broadcom with popular computing tools used by a large swath of corporations and reshuffle the vast market for enterprise computing technology. The chip company will spend the equivalent of $138.23 per share for VMware in the cash-and-stock deal, it said in a statement. That is more than 40 percent higher than VMware’s stock price before rumors of a deal began to circulate over the weekend. The combination would make Broadcom a significant player in data-center technology and cloud computing. It would also be the world’s second-biggest proposed acquisition this year, according to data from Dealogic. (Microsoft’s $75 billion bid for Activision Blizzard is the biggest.) VMware has more than 500,000 customers around the world, and counts as partners all the major cloud providers, including Amazon, Microsoft and Google. That makes VMware a prized asset for Broadcom’s chief executive, Hock E. Tan. Mr. Tan had been one of the most acquisitive forces in the chip industry, stitching Broadcom together one deal at a time, until President Donald J.

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