Broadcom Inc. acquired VMware Inc. in a complex transaction involving multiple merger agreements and conversions.
Shareholders of VMware were offered a choice between $142.50 in cash per share or 2.520 shares of Broadcom common stock.
The total consideration for the acquisition included $30.8 billion in cash and 544 million shares of Broadcom common stock valued at $53.4 billion.
Acquisition Details
Broadcom acquired VMware through a series of mergers and conversions, resulting in significant cash and stock considerations for VMware shareholders.
Financial Structure
Broadcom funded the cash portion of the acquisition through a combination of cash reserves and term loans, totaling $30.4 billion.
Accounting Treatment
The acquisition was treated as a business combination, with Broadcom identified as the accounting acquirer based on various criteria including share ownership and management composition.
- The acquisition of VMware expands Broadcom's portfolio and market presence in the technology sector, enhancing its competitive position.
- Broadcom's acquisition strategy and financing approach demonstrate its commitment to strategic growth and value creation for shareholders.
Broadcom's acquisition of VMware represents a significant strategic move in the tech industry, with implications for both companies' stakeholders and the broader market landscape.