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Deal analysis

Broadcom VMware

Broadcom acquired a large-scale infrastructure software franchise with durable enterprise penetration, but the premium was announced into a deteriorating software multiple environment.

88OPI

Significant overpay

Deal value

$61.0B

Announced

May 26, 2022

Buyer type

Strategic

Consideration

Cash / Stock

Premium bridge
Predicted fair premium24%
Actual premium44%
Overpay delta+20%
Model confidence91%
Premium signal
OPI 88 / 100
Model readout

Why ImpliedAI flags this deal

The preview model treats VMware as a high-quality asset while penalizing the transaction for financing-cycle timing and a large premium relative to precedent infrastructure software deals.

Margin expansionFinancing cycleEnterprise lock-inMultiple compression
Comparable transactions

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Selected precedent for strategic fit and premium context

Broadcom / CA Technologies

Selected precedent for strategic fit and premium context

Thoma Bravo / Anaplan

Selected precedent for strategic fit and premium context

Research preview note: this page uses illustrative model outputs to demonstrate the product workflow. It is not investment advice and should not be treated as a final valuation opinion.