The chip group Broadcom has agreed an acquisition with the software supplier VMware. The deal, which values VMware at about $61 billion, will be paid in cash and stock, Broadcom said Thursday.
Michael Dell, founder of the computer group Dell Technologies and the investment firm Silver Lake, which owned 40.2 and 10 percent of VMware, are also behind the transaction.
VMware shareholders should be able to choose between $142.50 in cash or 0.252 Broadcom shares per share. However, there must be an allocation so that in the end about half is paid in stock and half in cash. This results in a total consideration of $138.23 per share, which is 44 percent higher than VMware’s closing price on May 20. Then, according to media reports, takeover fantasies arose, pushing the VMware title to $120.54 at Wednesday’s closing price.
Source: Krone
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