Broadcom, a semiconductor and infrastructure software solutions company, and VMware, a virtualization company, today announced that they have entered into an agreement under which Broadcom will take ownership of all of the outstanding shares of VMware.

This will take place as a cash-and-stock transaction that values VMware at around $61 billion. With this, Broadcom will also acquire $8 billion of VMware net debt.

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

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.”

This combination works to provide enterprise customers with an expanded platform of essential infrastructure solutions intended to accelerate innovation as well as address several information technology 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 at scale across diversified, distributed environments, regardless of where they run. 

“Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company,” said Hock Tan, president and chief executive officer of Broadcom. “We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders.”

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