News

Obstacles Cleared for $69 Billion Broadcom-VMware Deal

Broadcom's $69 billion acquisition of VMware is set to close on Wednesday, Nov. 22, the two companies announced.

"There is no legal impediment to closing under U.S. merger regulations," according to a joint press release

 The deal has also undergone -- and withstood -- regulatory scrutiny from the United Kingdom, the European Union, Canada, Israel, Japan, Australia, Brazil, South Africa, South Korea, Taiwan and, most recently, China.

The fate of the acquisition, first announced in mid-2022, became uncertain last month after the Biden administration imposed a series of measures to prevent Chinese military intelligence from getting access to advanced chips, including those primed for artificial intelligence.    

Initially expected to close at the end of October, the deal is now being finalized only days after the San Francisco meeting between Chinese President Xi Jinping and President Biden.     

Broadcom and VMware now "have received all required regulatory approvals," the companies said Tuesday.

As part the deal's terms, Broadcom's software arm will become part of the VMware brand. The Broadcom Software Group encompasses business-critical software solutions for infrastructure and security. 

Among the deal's other terms, announced last year: 

  • Broadcom will assume $8 billion of VMware net debt. 
  • VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share. 
  • Current Broadcom shareholders will own approximately 88% and current VMware shareholders will own approximately 12% of the combined company on a fully diluted basis. 

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.

Featured

  • Broadcom Revamps VMware Partner Program Again

    Broadcom recently announced a significant update regarding its VMware Cloud Service Provider (VCSP) program, coinciding with the release of VMware Cloud Foundation (VCF) 9.0, a key component in Broadcom’s private cloud strategy.

  • Closeup of the new Copilot keyboard key

    Microsoft Updates Copilot To Add Context-Sensitive Agents to Teams, SharePoint

    Microsoft has rolled out a new public preview for collaborative "always on" agents in Microsoft 365 Copilot, bringing enhanced, context-aware tools into Teams channels, meetings, SharePoint sites, Planner workstreams and Viva Engage communities.

  • Windows 365 Cloud Apps Now Available for Public Preview

    Microsoft announced this week that Windows 365 Cloud Apps are now available for public preview. This aims to allow IT administrators to stream individual Windows applications from the cloud, removing the need to assign Cloud PCs to every user.

  • Report: Security Initiatives Can't Keep Pace with Cloud, AI Boom

    The increasingly fast adoption of hybrid, multicloud, and AI systems is easily outgrowing existing security measures, according to a recent global survey by the Cloud Security Alliance (CSA) and exposure management firm Tenable.