Broadcom buying VMware for $61 billion

Broadcom on Thursday announced an agreement to buy cloud computing giant VMware, controlled by Michael Dell, for approximately $61 billion.

Why it matters: This would be the year's second-largest tech merger, just behind Microsoft's deal for Activision Blizzard, and helps Broadcom continue to diversify beyond its semiconductor roots.

Details: VMware stockholders either will be able to receive $142.50 per share in cash, or 0.252 shares of Broadcom stock, for each of their VMware shares.

• VMWare shares closed last Friday at $95.61 per share, but then jumped on Monday morning after media reports of a possible deal.
• As part of the deal, Broadcom also would assume $8 billion of VMware net debt.

Earlier: Broadcom preps mega-deal for VMware