Broadcom to acquire VMware for $ 61 billion in cash and stock. It’s one of the largest technology acquisitions ever and is behind Dell’s $ 67 billion deal with EMC and Microsoft’s upcoming $ 68.7 billion acquisition of Activity Blizzard.

Broadcom is known for its chips, the design and manufacture of semiconductors for modems, Wi-Fi networks, and Bluetooth chips. In fact, this company’s design and chipset were previously used in most smartphones.

This acquisition is intended to expand Broadcom’s software business. VMware is a pioneer in cloud computing and virtualization technologies.

The merger of the two companies is expected to cast a shadow on technology, especially on enterprise infrastructure and cloud computing. Broadcom currently plans to rebrand from Broadcom Software Group to VMware so that the current infrastructure becomes part of VMware.

The deal, which is expected to close in Broadcom’s fiscal 2023, is backed by Michael Dell, who along with Silver Lake owns approximately 50 percent of VMware. And if the deal closes, it will be one of the biggest tech deals given to Broadcom that previously failed to buy Qualcomm, the chip maker, for $ 117 billion after the previous U.S. administration blocked the deal, national officials said. worries.

At the time, the 45th President of the United States, Donald Trump, blocked an “opponent” takeover of Broadcom’s Qualcomm. The latter is headquartered in Singapore, very close to China and chip maker Huawei. The Committee on Foreign Investment in the United States said at the time that “China is likely to compete aggressively to fill any void left by Qualcomm as a result of this hostile acquisition.”