US chipmaker Broadcom has cleared worldwide regulatory investigations into the merger with virtualization software maker VMware.
The final holdout was Chinese regulators who approved the merger with a list of caveats including ensuring that VMware would continue to run on servers not powered exclusively by Broadcom chips.
The deal was first announced in 2022 and is expected to close at around $69 billion, making it one of the largest tech mergers in history.
Broadcom traces its history back to tech giant Hewlett-Packard, which spun its lab products and semiconductor division off under the name Agilent Technologies in 1999.
After Agilent went public in one of the largest tech IPOs of the time, the semiconductor division again split off as Avago Technologies which later acquired rival chipmaker Broadcom Corporation in 2015 and renamed the joint company Broadcom Ltd.
In 2017, Broadcom attempted to buy Qualcomm in a giant $130 billion merger that was ultimately rejected by the Qualcomm board.
Broadcom then pivoted strategies, looking to broaden its portfolio outside of semiconductors and into infrastructure software.
In 2018, the company successfully acquired CA Technologies, the former Computer Associates, for its cloud computing software.
A year later, Broadcom completed the acquisition of enterprise security company Symantec.
VMware attracted Broadcom’s attention as one of the leading software companies that helped usher in the cloud computing revolution.
As corporate CIOs look to move some or all of their infrastructure into the cloud, the need for server virtualization has increased exponentially.
It is estimated that 80% of cloud computing runs through VMware, including much of Google and Amazon’s huge network of cloud servers.
The merger with Broadcom solidifies the company’s swift turn into a dominant player in the enterprise infrastructure space.