Chipmaker Broadcom is in talks to purchase cloud service supplier VMware, folks accustomed to the matter informed Reuters.
Negotiations between Broadcom and VMware are ongoing and a deal isn’t imminent, the sources mentioned. The deal phrases beneath dialogue couldn’t be discovered.
The acquisition would additional diversify Broadcom’s enterprise away from semiconductors and into enterprise software program, following its $18.9 billion (roughly Rs. 1,46,591 crore) acquisition of CA Technologies and its $10.7 billion (roughly Rs. 82,997 crore) buy of Symantec’s safety division in the final 4 years.
Bloomberg News first reported the deal late on Sunday. Broadcom and VMware didn’t instantly reply to Reuters’ requests for remark. As of Friday’s market shut, the market capitalisation of VMware was $40.3 billion (roughly Rs. 3,12,598 crore).
Michael Dell is VMware’s largest investor with a 40 p.c stake because of Dell Technologies having spun out VMWare to its shareholders final 12 months, in accordance to Refinitiv knowledge.
Private fairness agency Silver Lake, which has beforehand invested in Broadcom, is VMware’s second largest shareholder with a ten p.c stake, Refinitiv knowledge exhibits.