Broadcom Set to Acquire Cloud Service Provider VMware

Semiconductor and infrastructure software products manufacturer Broadcom Inc. (AVGO) is holding talks with an aim of acquiring provider of cloud service VMware Inc. (VMW). This information was disclosed by people who are directly involved in the matter.

According to the sources, talks between the two companies are still underway but too far from reaching a deal on the matter. The sources could however not disclose the terms under discussion.

If this deal sails through, it will diversify Broadcom’s business away from semiconductors and into enterprise software considering that it had acquired provider of application development, management and security solutions CA Technologies for $15 billion.

According to Refinitiv data, Michael Dell is the largest investor in VMare with 40% equity in the company. Private equity firm focused on investing technology and technology-related industries Silver Lake is the second largest shareholder in VMware with a 10% stake.

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