Broadcom to buy VMware for $61.8B
Broadcom Inc. announced on Thursday it will acquire shares of VMware for approximately $61.8 billion confirming the reports released the previous day. In addition, Broadcom will assume VMware's net debt of $8 billion.
"VMware has long been recognized for its enterprise software leadership, and through this transaction, we will provide customers worldwide with the next generation of infrastructure software," stated President of the Broadcom Software Group Tom Krause.
Additionally, Broadcom Inc. released its second quarterly earnings for the fiscal year today, revealing an increase of 23% in net revenue to reach $8.1 million compared to the previous year. The company's net income amounted to $2.6 billion, recording an increase of 73% year on year.
Broadcom's Q2 diluted earnings per share were $5.93, in comparison to the $3.30 in the second quarter of the previous year. The firm's cash flow from operations was estimated at $4.24 billion, rising 19% year-over-year. Broadcom Inc. revealed its third-quarter business outlook for the fiscal year, expecting it to hit $8.4 billion.
Before the opening bell, Broadcom Inc. shares decreased by 0.23% following the company's acquisition announcement and earnings report.