Broadcom reaches deal to buy VMware

Broadcom Inc., AVGO, said Thursday morning that it has reached an agreement to acquire VMware Inc. VMW. The deal values VMware at $61 billion and will see Broadcom assume $8 billion of VMware's net debt. After media reports suggested a deal was imminent, VMware shares had surged 25% in Monday trading, and the stock was up 0.3% in premarket trading Thursday. Broadcom's stock was up 1.6% beforemarket. Broadcom said in a release that the company plans to operate its Broadcom Software Group under the VMware name, integrating Broadcom's existing infrastructure and security software solutions as part of an expanded VMware portfolio once the deal is complete. Broadcom Chief Executive Hock Tan said in the release that the deal combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company.