Broadcom Inc AVGO is reportedly in discussions to take over cloud computing company VMWare Inc VMW.
What Happened: The San Jose, California-based semiconductors and infrastructure software solutions company is looking to purchase VMWare, Bloomberg reported, citing people familiar with the matter.
VMWare denied commenting, while a Broadcom representative wasn’t available immediately, according to Bloomberg.
Why It Matters: Broadcom has been on the lookout for big software acquisition, noted Bloomberg.
In 2018, the Hock Tan-led company announced the acquisition of infrastructure technology company CA Technologies for $18.9 billion in cash.
The following year it purchased Symantec Corporation’s enterprise security business.
Michael Dell, CEO of Dell Technologies Inc DELL, along with Silver Lake are top investors in VMWare, according to Bloomberg.
VMWare is an industry leader in virtualizing IT infrastructure and was spun off from Dell Technologies in November 2021.
Price Action: On Friday, Broadcom shares closed 0.55% lower at $543.19 while VMWare shares ended the regular session 0.6% higher at $95.56, according to data from Benzinga Pro.
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