Semiconductor company Broadcom (Nasdaq: AVGO) has finalized its acquisition of multicloud services provider VMware as part of a push to create a leading infrastructure technology company.
As a result of the transaction, Broadcom said Wednesday it will invest in the software stack VMware Cloud Foundation to help enterprise clients develop and advance the modernization of their private and hybrid cloud environments.
In May 2022, Broadcom agreed to buy VMware in a cash-and-stock transaction worth approximately $61 billion.
Under Broadcom, VMware will provide services to help customers modernize their cloud environments, including Software-Defined Edge, application networking and advanced security services and VMware Tanzu designed to help organizations accelerate application development and deployment.
Hock Tan, president and CEO of Broadcom, said the acquisition will bring together the two companies’ “engineering-first, innovation-centric teams” and further advance Broadcom’s efforts to help global enterprises make their hybrid and private cloud environments more resilient and secure.
“Broadcom is committed to innovation. That’s in our DNA and why we plan to invest significantly each year to advance VMware’s innovation and customer value,” Tan said in a blog post published Wednesday.
He noted that 50 percent of the investment will focus on research and development and the remaining half will help speed up the deployment of platforms through VMware and partner professional services.
VMware stopped trading on the New York Stock Exchange following the deal’s closing.