Semiconductor vendor Broadcom plans to buy cloud computing firm VMware for a whopping $61 billion in cash and stock.
Broadcom described the acquisition as part of its move to create a global infrastructure technology company. The company also announced that its Broadcom Software Group will be rebranded as VMware.
"VMware has long been recognized for its enterprise software leadership, and through this transaction we will provide customers worldwide with the next generation of infrastructure software. VMware's platform and Broadcom's infrastructure software solutions address different but important enterprise needs, and the combined company will be able to serve them more effectively and securely," said Tom Krause, president of Broadcom Software Group, in a statement. "We have deep respect for VMware's customer focus and innovation track record, and look forward to bringing together our two organizations."
Security-wise, the deal will bring Broadcom's Symantec security division and VMware's Carbon Black unit under one roof. Broadcom acquired Symantec in for $10.7 billion in August 2019, and VMware bought cloud-native endpoint security firm Carbon Black for $2.1 billion in October 2019.
The deal is expected to close in Broadcom's fiscal year 2023, pending regulatory and VMware shareholder approvals.