Broadcom to acquire VMware in $61 billion deal

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Broadcom Inc. AVGO, +1.42% said Thursday morning that it has reached an agreement to acquire VMware Inc. VMW, +3.97%. The deal values VMware at about $61 billion and will see Broadcom assume roughly $8 billion of VMware’s net debt. VMware shares had surged 25% in Monday trading after media reports suggested a deal was imminent, and the stock was up 0.3% in premarket trading Thursday. Broadcom’s stock was up 1.6% premarket. Broadcom said in a release that once the deal is complete, the company plans to operate its Broadcom Software Group under the VMware name, “incorporating Broadcom’s existing infrastructure and security software solutions as part of an expanded VMware portfolio.” Broadcom Chief Executive Hock Tan said in the release that the deal “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.”

This article was originally published by Marketwatch.com. Read the original article here.

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