Chip maker Broadcom to buy VMware for $61 billion

Broadcom announced on Thursday that it will buy cloud computing services company VMware in a $61 billion cash and stock transaction, focused on diversifying its business into enterprise software.

Broadcom shares were up 1.6%, while VMware shares were down nearly 1% before the markets opened.

The acquisition is the second largest announced so far in the world this year, after Microsoft agreed to buy video game maker Activision Blizzard for $68.7 billion in cash in January.

Each VMware shareholder will receive $142.50 per share, resulting in a premium of more than 48% over the share value at the close of May 22, when news of the negotiations between the companies was published.

Source: Reuters