Chipmaker Broadcom to buy VMware in $61 billion deal

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(C) Reuters. FILE PHOTO: The Broadcom Limited company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, 2021. REUTERS/Mike Blake/File Photo
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(Reuters) -Broadcom Inc said on Thursday it will buy cloud service provider VMware (NYSE:VMW) Inc in a $61 billion cash-and-stock deal to further diversify the chipmaker’s business into enterprise software.

Broadcom (NASDAQ:AVGO)’s shares were up 1.6%, while those of VMWare were down nearly 1% in premarket trading.

The acquisition is the second biggest announced globally so far this year, after Microsoft Corp (NASDAQ:MSFT)’s $68.7 billion deal to buy video game maker Activision Blizzard Inc (NASDAQ:ATVI) in January.

Each VMware shareholder will get $142.50 per share, resulting in a premium of over 48% to the stock’s close since the deal talks were first reported on May 22.

VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held.

Chipmaker Broadcom to buy VMware in $61 billion deal

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