San Francisco: Broadcom
Inc said Thursday that it will buy the cloud service provider Vmware
Inc in a $ 61 billion cash and stock deal to further diversify the chip maker’s business into enterprise software.
Shares of Broadcom were up 1.6%, while those of VMWare were down nearly 1% in pre-market trading.
the acquisition is the second largest announced globally so far this year, after Microsoft Corp’s $ 68.7 billion deal to purchase video game maker Activision Blizzard Inc in January.
Each VMware shareholder will receive $ 142.50 per share, with a premium of more than 48% at the close of the stock since the deal talks were first reported on May 22.
VMware shareholders will receive $ 142.50 in cash or 0.2520 Broadcom common stock for each VMware share held.
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