Broadcom has entered into an agreement to acquire VMware. This virtualization software company was spun off from Dell in 2021.
Broadcom continues to shop to diversify its business. After taking over CA Technologies for nearly $19 billion in 2018, then absorbing Symantec’s enterprise security division for $10.7 billion in 2019, the American group has reached an agreement to acquire vmware. The latter company, specializing in virtualization software, regained its independence in 2021 when Dell parted with it by selling its 81% stake.
However, VMware can still escape Broadcom as the purchase must be validated by regulators. In addition, VMware has the possibility of studying competing offers until July 5th. If Broadcom ends up winning the day early this summer, the transaction should be finalized no later than early 2023.
Return to California to facilitate the acquisition of American companies
It would not be the first time that a major purchase in the semiconductor market has failed. At the beginning of the year, the sale of ARM to Nvidia for 40 billion dollars had thus been abandoned. The operation, which was to represent the biggest acquisition in history in the microchip industry, had come up against the revolt of regulators around the world, but also of firms such as Google, Microsoft and Qualcomm.
It is also the latter that Broadcom tried to buy at the end of 2017 as part of a hostile offer. Donald Trump, then housed in the White House, opposed this mega-acquisition of 120 billion dollars, because the company was domiciled in Singapore. Since then, Broadcom has repatriated its headquarters to California so as to offer itself more easily to American companies such as VMware.