Broadcom Inc. and VMware, Inc. announced that they are expecting their acquisition deal to close soon, just before the expiration of their merger agreement. The companies have successfully obtained legal merger clearance in various countries, including Australia, Brazil, Canada, the European Union, Israel, and Japan, among others.
One significant development is that there are no legal barriers to closing the deal under U.S. merger regulations, potentially streamlining the process. VMware stockholders have already made their elections concerning the form of consideration they wish to receive in exchange for their shares of VMware common stock.
Stockholders have two options: they can choose to receive $142.50 in cash per share of VMware common stock or 0.2520 of a share of Broadcom common stock. An overwhelming majority of approximately 96% of outstanding VMware common stock shares have elected to receive the stock consideration, while only about 4% have chosen the cash consideration.
To ensure fairness, the merger consideration will be prorated. This means that 50% of the outstanding shares of VMware common stock will be converted into cash consideration, while the remaining 50% will be converted into stock consideration. For those stockholders who elected to receive cash, they will be granted $142.50 per share of VMware common stock.
For more detailed information about the merger consideration and election procedures, interested parties can refer to the proxy statement/prospectus.
Broadcom Inc. is a renowned global technology leader that specializes in the development and supply of semiconductor and infrastructure software solutions. On the other hand, VMware is a leading provider of multi-cloud services catering to all kinds of applications. The company is committed to building a better future through its 2030 Agenda, which aligns with sustainability goals and societal contributions.
With the acquisition deal expected to close soon and the necessary legal clearances obtained, the collaboration between Broadcom Inc. and VMware, Inc. appears to be on track. The merger will undoubtedly have significant implications for the technology industry and could potentially lead to exciting advancements in semiconductor and infrastructure software solutions.