Broadcom in talks to acquire cloud computing company VMware

Someone familiar with the matter said that semiconductor company Broadcom was in talks to buy VMware.

The person said Sunday night that a deal had not yet been finalized and did not have the authority to discuss it publicly. Bloomberg first announced the talks.

Broadcom has been the most acquired for a long time and its CEO, Hawke E. Dan, who is known for making deals. The potential acquisition of VMware will give Broadcom a major presence in cloud computing, where it will work with Amazon Web Services, a leading company in the VMware market.

Broadcom, based in Singapore, relocated its headquarters to San Jose, California, where it initially acquired most of its chip companies. But US chip maker Qualcomm was bought out of its $ 117 billion deal In March 2018, President Donald J. Blocked by Trump Among national security concerns, Broadcom has diversified its targets. It acquired the software company CA Technologies $ 18.9 billion later that year and the security division Symantec $ 10.7 billion in 2019.

VMware, which was spun off from Dell Technologies last November, is known for creating virtualization software that allows a computer to run like multiple machines and basically make the system more efficient. It has also diversified and developed a range of software for data centers.

VMware’s shares rose 20 percent in freemarket trading on Monday, valued at about $ 48 billion. Shares of Broadcom, valued at more than $ 200 billion, fell 4 percent.

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