M&A · Tech · Services-Prepackaged Software
Broadcom Inc. to acquire VMware, Inc.
Announced May 26, 2022 · Closed Nov 22, 2023
Deal value$61.00BEV $67.26B
Premium44.0%To unaffected price
EV / Adj. EBITDA14.7x5.2x EV / Revenue
ConsiderationCash and stock$138.23 per share
Transaction
- Acquirer
- Broadcom Inc. (AVGO)
- Target
- VMware, Inc. (VMW)
- Buyer type
- Strategic
- Offer price per share
- $138.23
- Enterprise value
- $67.26B
- Status
- Closed Nov 22, 2023
Deal protections
- Break fee (target pays)
- $1.50B · 2.5%
- Reverse fee (buyer pays)
- $1.50B · 2.5%
- Go-shop
- No-shop
- Financing
- Committed · Barclays, Citigroup, Credit Suisse, Morgan Stanley
Advisors
- To the acquirer
- Barclays, BofA Securities, Citigroup, Credit Suisse, Morgan Stanley, Wells Fargo
- To the target
- Goldman Sachs, JPMorgan
Sector context · Tech
- Comparable deals
- 70 in the prior 24 months
- Premium
- 44.0% vs. 32.5% sector median
- EV / Adj. EBITDA
- 14.7x vs. 18.1x sector median
- Break fee
- 2.5% vs. 3.0% sector median
Timeline
- AnnouncedMay 26, 2022
- Proxy filedOct 3, 2022
- Definitive proxyOct 3, 2022
- Shareholder voteNov 4, 2022
- ClosedNov 22, 2023
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$100.80$148.90
Future share priceGoldman Sachs$92.30$139.90
Precedent transactionsGoldman Sachs$99.10$132.90
Premiums paidGoldman Sachs$116.80$138.80
Trading comparablesJPMorgan$78.75$134.00
Precedent transactionsJPMorgan$98.00$135.00
Discounted cash flowJPMorgan$109.00$159.25
Trading comparablesJPMorgan$519.50$639.25
Discounted cash flowJPMorgan$532.00$747.00
Offer $138.23
Implied value per VMware, Inc. share by analysis, from Goldman Sachs and JPMorgan · DCF discount rate 7.5%–8.5%.