In a move that will put a chill in some of VMWare’s partners, the Broadcom takeover bid has been given the nod.
Broadcom will pay $61 billion and acquire all of the outstanding shares of VMware in a cash-and-stock transaction.
Raghu Raghuram, chief executive officer of VMware, said: “VMware has been reshaping the IT landscape for the past 24 years, helping our customers become digital businesses. We stand for innovation and unwavering support of our customers and their most important business operations and now we are extending 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 enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player. Collectively, we will deliver even more choice, value and innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era.”
The transaction, which is expected to be completed in Broadcom’s fiscal year 2023, is subject to the receipt of regulatory approvals and other customary closing conditions, including approval by VMware shareholders.
Following the closing of the deal, the Broadcom Software Group will rebrand and operate as VMware, incorporating Broadcom’s existing infrastructure and security software solutions as part of an expanded VMware portfolio.
However there are concerns among VMware’s partners who are worried that Broadcom could stuff the company up. Many were surprised that Broadcom even got near VMWare as it was widely believed that the outfit was going to go standalone as a public company or have a bunch of private equities buy it out.
There are fears that VMWare’s channel programme will be gutted, although no one in has provided Channeleye with any evidence this is likely.
One VMWare channel partner told us that both companies need to be on the blower pronto to assure them that it is business as usual.
