By Greg Roumeliotis
(Reuters) – Chipmaker Broadcom Inc is in talks to acquire cloud service provider VMware Inc, people familiar with the matter told Reuters.
Negotiations between Broadcom and VMware are ongoing and a deal is not imminent, the sources said. The terms and conditions under discussion could not be ascertained.
The acquisition would further diversify Broadcom’s business away from semiconductors and into enterprise software after buying CA Technologies for $18.9 billion and Symantec Corp’s security division for $10.7 billion over the past four years .
Bloomberg News first reported on the deal late Sunday. Broadcom and VMware did not immediately respond to Reuters requests for comment. At the close on Friday, VMware’s market capitalization was $40.3 billion.
Michael Dell is VMware’s largest investor with a 40% stake since Dell Technologies Inc spun off VMWare to its shareholders last year, according to data from Refinitiv.