Will Broadcom buy VMware?

Microchip manufacturer Broadcom has offered $61 billion to buy cloud computing and virtualization company VMWare The deal would see shareholders receiving cash consideration of $142.50 per share or a swap of 0.252 Broadcom stock per VMWare share

How much debt does Broadcom have?

Broadcom has received commitments from a consortium of banks for $32 billion in new, fully committed debt financing to help fund the deal, and is expected to be completed in Broadcom’s fiscal year 2023. Broadcom will also assume $8 billion of VMware net debt.

What will Broadcom do with a new acquisition?

With this acquisition, Broadcom won’t just be buying a place at the table, they’ll be entering the game as the world’s largest player. It will make Broadcom an even more compelling story, with the ability to generate revenue on both the hardware and software components of the industry.

How much will VMware shareholders get?

VMware shareholders will get $142.50 per share under the purchase, resulting in a premium of nearly 49% to the stock’s close on May 22, when talks of the deal were first reported. Broadcom will assume $8 billion of VMware net debt, the company said. Broadcom shares were up 1.6% in premarket trading, while VMWare fell nearly 1%.