Chipmaker Broadcom Inc is in talks to amass cloud service supplier VMware Inc, individuals accustomed to the matter informed Reuters.
Negotiations between Broadcom and VMware are ongoing and a deal shouldn’t be imminent, the sources mentioned. The deal phrases beneath dialogue couldn’t be realized.
The acquisition would additional diversify Broadcom’s enterprise away from semiconductors and into enterprise software program, following its $18.9 billion acquisition of CA Applied sciences and its $10.7 billion buy of Symantec Corp’s safety division within the final 4 years.
Bloomberg Information 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 capitalization of VMware was $40.3 billion.
Michael Dell is VMware’s greatest investor with a 40% stake because of Dell Applied sciences Inc having spun out VMWare to its shareholders final yr, based on Refinitiv knowledge.
Non-public fairness agency Silver Lake, which has beforehand invested in Broadcom, is VMware’s second largest shareholder with a ten% stake, Refinitiv knowledge exhibits.
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