Chip manufacturer Broadcom is discussing a possible acquisition with VMware. The chip manufacturer would like to transform itself into a supplier of cloud software and infrastructure solutions.

These are the findings of Bloomberg sources. The possible acquisition price is unknown. VMware is estimated at a value of 40 billion dollars (37.7 billion euros). Acquisition prices are often higher than estimated values.

Less dependence on chips

One reason for Broadcom’s interest in VMware is that, despite its profits due to the global chip shortage, the manufacturer does not want to solely depend on chip production.

Broadcom has been focusing on business infrastructure software for several years. In 2018 and 2019, it acquired CA Technologies and Symantec’s security business. Through software, the chip manufacturer can more easily establish itself in the steadily growing data centre market.

Broadcom has previously been in talks with major enterprise software specialists. In 2018, it showed an interest in SAS and Qualcomm. Both talks fell through.

No comment

Broadcom and VMware have not commented on the acquisition rumours. According to Bloomberg’s sources, there’s a good chance that the acquisition is dropped at a later stage of negotiations.

Tip: Broadcom wants to buy big data analytics company SAS Institute