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Broadcom buys cloud company VMware for $61B in 2nd-largest tech deal of 2022

Broadcom buys cloud company VMware for $61B in 2nd-largest tech deal of 2022
Thursday's agreement is believed to be the second-largest tech acquisition in the U.S. this year, behind only Microsoft's nearly $70 billion deal with Activision Blizzard in January. File Photo by John G. Mabanglo

May 26 (UPI) -- Computer chip and software producer Broadcom announced the second-largest technology deal of 2022 on Thursday -- an acquisition of cloud company VMware for more than $60 billion.

The cash-and-stock deal has already been approved by the boards of both companies and would include about $8 billion in VMware debt. VMware's shareholders still must sign off on the acquisition, which is worth about $61 billion.

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Broadcom said it will rebrand as VMware once the deal closes and incorporate infrastructure and security software as part of the new brand.

The size of Thursday's deal is second this year only to Microsoft's acquisition of Activizion Blizzard in January. Photo by John Angelillo/UPI

"VMware's platform and Broadcom's infrastructure software solutions address different but important enterprise needs," Broadcom President Tom Krause said in a statement Thursday.

If it's approved by regulators, the deal is expected to close in fiscal 2023.

Thursday's agreement is believed to be the second-largest tech acquisition in the United States this year, behind only Microsoft's nearly $70 billion deal with Activision Blizzard in January.

Broadcom attempted to buy chipmaker Qualcomm four years ago, but the deal was scuttled by then-President Donald Trump on national security grounds.

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