The chip company Broadcom Negotiating acquisition of VMware – a cloud services company, according to a Reuters report. According to the report, negotiations between the companies have been going on for some time and the deal is not expected to be signed soon. At this point, the amount of the deal is still unknown, but VMware’s market capitalization at the close of trading on Friday was $ 40.3 billion.
If the acquisition goes ahead, it will further diversify Broadcom’s business areas – from hardware to software – after the company acquired CA Technologies in 2018, which develops and markets business software for $ 18.9 billion, and after acquiring Symantec Corp’s security unit in 2019 for $ 10.7 billion. dollar.
Michael Dell, founder and chairman of Dell, is the largest shareholder in VMware and owns about 40% of the company. The private investment fund Silver Lake is the second largest investor in the company and holds 10% of VMware shares.