Broadcom completes $69bn VMware acquisition

Technology company, Broadcom, has completed its acquisition of cloud computing firm VMware after receiving final approval in China.

The US$69 billion deal which was announced last year marks one of the tech industry’s biggest ever acquisitions. The agreement was the second-largest acquisition of 2022 following Microsoft’s US$68.7 billion deal for game publisher Activision Blizzard. It also sees the tech outfit assume US$8 billion debt from VMware.

Prior to China’s approval, the VMware sale to Broadcom had been approved by the European Commission and the UK’s Competition and Markets Authority (CMA).

The company has plans to invest in VMware Cloud Foundation, the software stack that serves as the foundation of private and hybrid clouds. Following the acquisition, Broadcom said VMware is to offer a rich catalog of services to enhance and optimise cloud and edge environments, including VMware Tanzu to help accelerate deployment of applications, as well as Application Networking (Load Balancing) and Advanced Security services, and VMware Software-Defined Edge for Telco.

Hock Tan, president and chief executive officer of Broadcom, said, “We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams as we take another important step forward in building the world’s leading infrastructure technology company. With a shared focus on customer success, together we are well positioned to enable global enterprises to embrace private and hybrid cloud environments, making them more secure and resilient. Broadcom has a long track record of investing in the businesses we acquire to drive sustainable growth, and that will continue with VMware for the benefit of the stakeholders we serve.”