VMware chief defends Broadcom deal as means of merging hardware and software

RAGHU Raghuram, chief executive of VMware, is keen to talk about the software company's research and development (R&D) trajectory once the company is part of a larger entity.

Just 6 months after being spun out from Dell Technologies, VMware fielded a suitor: chipmaker Broadcom, which on May 26 announced a US$61 billion cash-and-stock bid for the New York-listed company.

The blockbuster deal is expected to be completed in Broadcom’s financial year ending Oct 31, 2023. VMware shareholders can choose to receive 0.252 shares of Broadcom stock or US$142.50 in cash per share, subject to a proration. The total US$138.23 per-share price tag represents a 44 per cent premium to VMware’s US$95.71 closing price on May 20, before media reports emerged of talks.