Three senior VMware, Inc (NYSE: VMW) executives exited the enterprise software company that Broadcom Inc (NASDAQ: AVGO) aims to acquire for $61 billion.
VMware CEO Raghu Raghuram said the senior vice presidents of cloud infrastructure, Mark Lohmeyer; applications and management business, Ajay Patel; and networking and advanced security, Tom Gillis, departed an internal memo, the Wall Street Journal reports.
In May, Broadcom shared its plans of scooping VMware as part of a broader push by the chip company into the software. VMware would nearly triple the size of Broadcom’s software division and account for almost 49% of the company’s revenue.
Also Read: Broadcom’s Vmware Draws More Regulatory Attention, This Time From EU
“As it happens during such transition, we find some executives decide to move on,” the internal memo read. “All three have held leadership positions over several years and drove much impact across the business.”
VMware named four executives to replace them.
The U.S. Federal Trade Commission sought information from the companies about the combination.
Broadcom expected an extended period of reviews of the deal in many jurisdictions across the globe, CEO Hock Tan said in an analyst call, even though it had already received clearance in Brazil, Canada, and South Africa. He said he still expected the review to be over by the company’s 2023 fiscal year, which runs through next October.
VMware signaled that the departures would not affect its operations.
The memo highlighted the company’s strong and seasoned senior executives ready to step into the roles and broader efforts to reorient its business. VMware is “preparing to enter the next phase of growth and evolution as a division of Broadcom during 2023,” the report cited Raghuram.
Price Action: VMW shares closed higher by 1.38% at $122.61 on Monday.
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Source: https://finance.yahoo.com/news/broadcoms-target-company-vmware-ousts-103012177.html