Broadcom acquires VMware for $61 billion

Chip maker Broadcom has agreed to buy cloud computing company VMware for $61 billion, marking one of the biggest deals in the technology sector.

VMware shareholders can choose to receive about $142 in cash or a quarter of a Broadcom share for one share of VMware stock.

The offer represents a premium of about 44% over VMware’s closing price on May 20, the last trading day before the acquisition talks were announced.

It is noteworthy that the technology sector witnessed two huge deals this year, the first of which was Microsoft’s acquisition of the video game company Activision Blizzard, for $ 69 billion, and the other from a consortium backed by Vista Equity Partners to acquire the software maker Citrix System for $ 13 billion, while the world is waiting Twitter deal worth $44 billion.