Broadcom Inc apparently has entered into a conversation to buy the cloud service provider, VMware Inc.
The sources said that negotiations between Broadcom and VMware are going on and a deal is not imminent. The deal terms under discussion could not be learned.
The acquisition would further diversify Broadcom’s business away from semiconductors and into enterprise software, following its $18.9 billion acquisition of CA Technologies and its $10.7 billion purchase of Symantec Corp’s security division in the last four years.
Michael Dell is VMware’s biggest investor with a 40% stake as a result of Dell Technologies Inc having spun out VMWare to its shareholders last year, according to Refinitiv data.
Private equity firm Silver Lake, which has previously invested in Broadcom, is VMware’s second largest shareholder with a 10% stake, Refinitiv data shows.
