The company announced in a press release that Broadcom’s $61 billion giant VMware acquisition was completed following significant reviews by regulatory authorities. With China recently approving the purchase with additional restrictions, the network chip manufacturer has received all necessary approvals.Broadcom acquired VMware for $61 billion
The Broadcom/VMware deal hasn’t made as much of a splash as other mega-acquisitions involving Microsoft and Activision, but the move is especially important for the business world. Because Broadcom’s products are widely used for data centers, cloud providers and network infrastructure, they form the structure of much of the internet. VMware, meanwhile, produces virtualization and cloud computing software that allows companies to securely connect local networks to public cloud access.
Although the two companies complemented each other perfectly, this also attracted the attention of regulatory authorities. For example, the European Commission was concerned that Broadcom could harm competition by limiting interoperability between rival hardware and VMware’s server virtualization software. Other concerns also included that the company might block or reduce access to VMware’s software or bundle VMware with its own hardware products.
However, Broadcom’s agreement with its main rival, Marvell, that alleviated concerns put the process on the desired path. The deal could finally be closed for Broadcom, which reached an agreement with China the other day and promised to ensure that VMware’s server software will be interoperable with rival hardware.
23546
