Broadcom is acquiring VMware in a cash-and-stock transaction for approximately $61 billion. In addition, Broadcom will assume $8 billion of VMware net debt, say the companies.
Following the closing of the transaction, the Broadcom Software Group will rebrand and operate as VMware, incorporating Broadcom’s existing infrastructure and security software solutions as part of an expanded VMware portfolio.
Michael Dell and Silver Lake, which own 40.2% and 10% of VMware shares outstanding, respectively, have signed support agreements to vote in favor of the transaction, so long as the VMware board continues to recommend the proposed transaction with Broadcom.
The transaction, which is expected to be completed in Broadcom’s fiscal year 2023, is subject to the receipt of regulatory approvals and other customary closing conditions.
Barclays Capital, BofA Securities, Citigroup Global Markets, Credit Suisse Securities, Morgan Stanley and Wells Fargo Securities are serving as financial advisors to Broadcom. Wachtell, Lipton, Rosen & Katz and O’Melveny & Myers are serving as legal counsel to Broadcom, and Cleary Gottlieb Steen & Hamilton is serving as regulatory counsel.
Goldman Sachs and J.P. Morgan Securities are serving as financial advisors to VMware, and Gibson, Dunn & Crutcher is serving as legal counsel.
You can find Broadcom’s investor presentation here.