Broadcom announces plans to buy VMware in $61 billion deal

Based on the closing price of the common stock of the company on May 25, 2022, the transaction is valued at $61 billion.

The deal would be one of the largest technology acquisitions of all time, behind Microsoft's pending $69 billion deal to purchase Activision Blizzard and Dell's $67 billion purchase of EMC in 2016

The company will be able to sell enterprise software which has larger margins because of its purchase of VMware. VMware's products are used by enterprises to more efficiently run their own server as well as cloud server.

The most acquisitive Semiconductor company has used mergers to fuel its growth. It bought CA Technologies for $18.9 billion and Symantec for $10.7 billion in the last year.

Since the beginning of the year, there has not been a large acquisition by Broadcom. In March, the company's CEO said that they could do a good-sized acquisition.

Donald Trump objected to the deal because of national security.

The company spun off from Dell in order to pay off debt. Dell acquired the company when it bought EMC. Michael Dell is the founder and CEO of Dell.

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