Broadcom, a prominent chip and software manufacturer, has announced its successful navigation through all regulatory hurdles for the completion of its acquisition of VMware, a cloud technology company. The deal, amounting to a substantial $69 billion, is set to be finalized on Wednesday after receiving approval from China, solidifying Broadcom’s significant move in the cloud computing sector.
The acquisition involves Broadcom paying $61 billion in cash and stock for VMware and absorbing $8 billion of the latter’s debt, making it one of the most substantial technology deals in the industry. This news follows closely after Microsoft’s colossal acquisition of video game-maker Activision Blizzard for the same staggering amount, underscoring the trend of high-value tech acquisitions taking place.
This achievement comes after 18 months of rigorous efforts by Broadcom to secure approvals from various countries, barely days before the merger agreement’s expiration. China’s State Administration of Market Regulation greenlit the acquisition following Broadcom’s submitted commitments on Monday, assuring a reduction in the deal’s impact.
The completion of this deal signals Broadcom’s strategic intent to strengthen its foothold in the cloud computing market through VMware’s technology, which facilitates seamless integration of public cloud access and internal company networks, reinforcing its competitive edge in the industry.
