Broadcom Acquisition of VMware to Close Wednesday

The $69 Billion sale of Vmware to Broadcom is finally set to close on Wednesday, Nov. 22.

"There is no legal impediment to closing under U.S. merger regulations," according to a joint press release

 The deal has also undergone -- and withstood -- regulatory scrutiny from the United Kingdom, the European Union, Canada, Israel, Japan, Australia, Brazil, South Africa, South Korea, Taiwan and, most recently, China.

The fate of the acquisition, first announced in mid-2022, became uncertain last month after the Biden administration imposed a series of measures to prevent Chinese military intelligence from getting access to advanced chips, including those primed for artificial intelligence.    

Initially expected to close at the end of October, the deal is now being finalized only days after the San Francisco meeting between Chinese President Xi Jinping and President Biden.     

Broadcom and VMware now "have received all required regulatory approvals," the companies said Tuesday.

As part the deal's terms, Broadcom's software arm will become part of the VMware brand. The Broadcom Software Group encompasses business-critical software solutions for infrastructure and security. 

Among the deal's other terms, announced last year: 

  • Broadcom will assume $8 billion of VMware net debt. 
  • VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share. 
  • Current Broadcom shareholders will own approximately 88% and current VMware shareholders will own approximately 12% of the combined company on a fully diluted basis. 

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.


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