According to Bloomberg News, this is one of the biggest deals in the history of the technology industry and the biggest acquisition of semiconductor manufacturers. The successful transactions between the two companies are juxtaposed with other major acquisitions in 2022, including Microsoft's acquisition of game publisher Activision Blizzard for $68.7 billion and Musk's acquisition of Twitter for $44 billion.

Bloomberg also said that the transaction is a continuation of a series of acquisitions by Hock Tan, CEO of Broadcom, who founded "one of the largest and most diversified companies in the industry". It is believed that the acquisition of VMware will consolidate Broadcom's position in the software field, which has been the core of Tan's strategy in recent years. 20 18, Broadcom acquired enterprise software manufacturer CA Technologies, 20 19, and acquired enterprise security company Symantec.

"Based on our successful record at M&A, this transaction will combine our leading semiconductor and infrastructure software businesses with pioneers and innovators in enterprise software," Tan said in the company announcement.

Broadcom manufactures components for companies from all walks of life, from Apple to industrial equipment manufacturers, but it is the most active in data center configuration. Broadcom pointed out that the acquisition of VMware-level software developers will enable the company to continue to serve this market.

As part of the transaction, VMware shareholders will receive $65,438+042.5 in cash or 0.252 Broadcom shares per share. This quotation is about 44% higher than the closing price of VMware5 on May 20th (the last trading day before the media reported the transaction). The board of directors of both companies approved the acquisition.