Broadcom is acquiring VMware for $61 billion

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The $60 billion cash-and-stock deal is between the two companies. It's one of the biggest tech acquisitions of all time, behind Dell's $67 billion deal and Microsoft's pending acquisition of the video game publisher. The chip business of Broadcom is known for its design and manufacturing of chips for multiple devices.

The acquisition is designed to boost the software business of the company. Dell spun off VMware last year, which focused on cloud computing and virtualization technology. If you've used a virtual machine at work over the past decade, you're most likely powered by either VMware or Citrix. It's likely that the devices you've used to connect to the internet were powered by some part of the networking chain.

Image: Broadcom

The combination of the two companies could be focused on enterprise infrastructure and cloud computing. CA Technologies, makers of security and database software, was acquired by Broadcom for $18.9 billion in 2018). Less than a year later, it sold the business to another company.

Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, creates a new company.

The deal has the support of Michael Dell and Silver Lake, who own 50 percent of VMware. It will be one of the largest tech deals of all time if the deal closes. After the Trump administration blocked the deal due to national security concerns, Broadcom tried again to buy rival chipmakerQUALCOMM for more than $100 billion.