Broadcomsemiconductor and infrastructure software solutions company, and VMwareVirtualization Company announced today that it has entered into an agreement under which Broadcom will take ownership of all open shares in VMware.

This will be done as a cash and share transaction, which estimates VMware at about $ 61 billion. With this, Broadcom will also acquire $ 8 billion in net debt to VMware.

Following the completion of this transaction, the Broadcom Software Group will be rebranded and will operate as VMware, adding Broadcom’s security infrastructure and software solutions to VMware’s expanded portfolio.

Raghu Raghuram, CEO of VMware, said: “VMware has changed the IT landscape over the last 24 years, helping our customers become digital businesses. We stand for innovation and the unwavering support of our customers and their most important business operations and are now expanding our commitment to exceptional service and innovation by becoming the new software platform for Broadcom. Combining our assets and talented team with Broadcom’s existing VMware enterprise software portfolio creates a remarkable enterprise software player. Together, we will provide even more choice, value and innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era. ”

This combination works to provide corporate customers with an expanded platform of core infrastructure solutions designed to accelerate innovation as well as meet several IT infrastructure needs.

According to the companies, this acquisition will allow customers to enjoy greater choice and flexibility to build, run, manage, connect and protect applications on a large scale in diverse, distributed environments, no matter where they work.

“Based on our proven experience of successful mergers and acquisitions, this deal combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we rethink what we can deliver to customers as a leading infrastructure technology company,” Hawk said. Tan, President and CEO of Broadcom. “We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and creating even more value for our combined stakeholders, including both stakeholder groups.”

For more information on this acquisition, see section for investors on the Broadcom website.

Broadcom acquires VMware for $61 billion