The semiconductor manufacturer Broadcom announced on Thursday that it is acquiring the cloud server company VMware for approximately $61 billion.
The acquisition, which will be finalized in a cash and stock deal, will merge the two companies in one of the largest tech deals to date. Broadcom will acquire all of VMware's outstanding shares in a cash and stock transaction valued at $61 billion, based on current market shares.
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"Building upon our proven track record of successful [mergers and acquisitions], this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we re-imagine what we can deliver to customers as a leading infrastructure technology company," Broadcom CEO Hock Tan said in a press release announcing the deal.
"We look forward to VMware's talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders," Tan added.
Broadcom has regularly pursued mergers in an attempt to expand the company. The company acquired CA Technologies in 2018 for $18.9 billion and Symantec in 2019 for $10.7 billion.
The company attempted to acquire fellow semiconductor producer Qualcomm in 2019 in a $117 billion deal. However, former President Donald Trump vetoed the deal due to "credible evidence" suggesting that Broadcom might take actions that "threatened to impair the national security of the United States." Trump did not expand on what that credible evidence entailed, although analysts point to the merger possibly nullifying the U.S.'s ability to maintain market control.
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The company's acquisition would be one of the largest in history. If it is completed, it will only trail Microsoft's acquisition of the game developer Activision Blizzard in 2022 for $68.7 billion and Dell's acquisition of EMC in 2016 for $67 billion.
VMware provides companies and enterprises with cloud servers, infrastructure, and security options.