What to Know
VMware’s multi-cloud portfolio spans application modernization, cloud management, cloud infrastructure, networking, security and more.Following the closing of the transaction, the Broadcom Software Group will rebrand as VMware and incorporate Broadcom’s existing infrastructure and security software solutions as part of an expanded VMware portfolio.
The combined company will provide enterprise customers an expanded platform that can help accelerate innovation and address information technology infrastructure needs.
“Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company,” said Hock Tan, president and CEO of Broadcom.
The transaction, which is anticipated to close in Broadcom’s fiscal year 2023, is expected to add approximately $8.5 billion of pro forma EBITDA from the acquisition within three years of closing.
Under the terms of the agreement, VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom stock for each VMware share they own.
Upon closing, current Broadcom shareholders will own approximately 88 percent and current VMware shareholders will own approximately 12 percent of the combined company.
