Broadcom Inc (AVGO.O) said on Thursday that it will pay $61 billion in cash and shares to purchase cloud computing giant VMware
Broadcom Inc (AVGO.O), the chipmaker’s biggest and riskiest attempt to expand its business into enterprise software.
The deal is the second-largest in the world this year, after only Microsoft Corp’s (MSFT.O) $68.7 billion purchase of video game producer Activision Blizzard Inc. (ATVI.O).
The chipmaker’s shares closed up 3.5% after the news of the deal was first reported on May 22. Broadcom will also assume $8 billion of VMware’s net debt.
In one fell swoop, the deal will almost triple Broadcom’s software-related revenue to about 45% of its total sales.
The deal comes at a time when there is an increased push for more competition in all sectors ranging from agriculture to technology.
Broadcom’s attempt to acquire mobile chip giant Qualcomm was blocked by former U.S. President Donald Trump.
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