Broadcom closes acquisition of VMware
American semiconductor manufacturer Broadcom has announced the completion of a deal to acquire software developer VMware worth $61 billion. Regulators tried to prevent the merger, pointing out that the deal would limit competition in the server market and lead to a rise in the price of products in this segment.
Broadcom has received legal permission to merge regulators from Australia, Brazil, Canada, China, the EU, Israel, Japan, South Africa, South Korea, the UK and Taiwan. In addition, the companies have granted permission to control foreign investments in all necessary jurisdictions.
Broadcom products are widely used in data centers, cloud and network infrastructures. VMware produces software for virtualization and cloud computing, solutions that allow customers to securely connect local networks with cloud environments.
At the end of last year, the European Commission indicated that the deal could limit the compatibility of Broadcom's competitor equipment with VMware software. The regulator expressed concern that after the takeover Broadcom may prohibit or worsen the support of VMware software for competitors or combine the acquired company with its own hardware products.
In the summer, Broadcom received EU approval for a deal with VMware. To do this, the semiconductor giant had to guarantee Marvell and other competitors access to APIs, materials, tools and technical support, as well as compatibility of VMware software with competitors' solutions on the same terms as Broadcom will use the software. The EC concluded that the merger would not harm competition in the market.
On November 22, the deal was approved by Chinese regulatory authorities. However, the Chinese authorities obliged Broadcom to ensure compatibility of VMware server software with competitors' equipment.
According to the Register, Broadcom plans to reorganize VMware into four divisions, none of which includes computing products for end users. VMware Cloud Foundation was headed by Krish Prasad, Tanzu — Purnima Padmanabhan, Software-Defined Edge — Sanjay Uppal, Application Networking and Security — Umesh Mahajan. All of them held senior positions at VMware. Register has 26 divisions within Broadcom.
Another consequence of the merger was the departure of Raghu Raghurama from the post of CEO of VMware.
South Africans love sports, especially rugby. And they bet on the victory of their favorite team. You can download betway mobile app and enjoy!
