Chip maker Broadcom Inc. is in talks to acquire cloud service provider VMware Inc in a $60 billion deal which would further diversify the chip manufacturer’s business into enterprise software, according to reports.
Broadcom makes an array of chips used in products ranging from mobile phones to telecom networks. The acquisition of VMware would give it access to data centres where the latter’s technology is a mainstay for cloud customers.
If the negotiations prove successful, a deal could be announced as early as Thursday, when VMware is scheduled to report quarterly earnings, the sources added.
Broadcom topped Wall Street’s estimates when it reported fiscal first-quarter earnings in March. The company is scheduled to report second-quarter earnings on June 2.
According to MarketWatch, last year, Dell Technologies Inc. DELL, +2.92% finally spun off its majority stake in VMware. In its last earnings report in February, Palo Alto, Calif.-based VMware beat earnings expectations but lowered its outlook for the current quarter. It is scheduled to report first-quarter earnings on Thursday when the outcome of the deal is likely going to be announced.