CORRECTION: This headline has been adjusted to take into account the full value of the acquisition price.

Broadcom made good on rumors by acquiring VMware in a deal that is set to reshape both companies and the virtualization space.

The deal, which was hinted at last weekend, will see the global chip giant acquire VMware for approximately $61 billion in cash and stock. Broadcom is also assuming around $8 billion in VMware debt. The deal has been approved by each company’s board of directors.

Michael Dell, who owns 40% of VMware’s outstanding shares, has also thrown his support behind the deal. Dell’s interest in VMware is tied to Dell Technologies spinoff of VMware last year.

That deal provided VMware the freedom to execute on its vision to create a unified management layer via software across all clouds and hardware infrastructure. It also simplified the company’s capital structure and governance model.

The Broadcom proposal has also gained support from Silver Lake, which owns 10% of VMware’s outstanding shares.

Broadcom said it expects the deal to close in its 2023 fiscal year. Post-close, Broadcom will rebrand its Software Group as VMware and will transition Broadcom’s existing infrastructure and security software solutions to be part of an expanded VMware portfolio.

VMware does hold a 40-day “go-shop” provision as part of the deal that allows it to actively “solicit, receive, evaluate, and potentially enter negotiations” on other offers. The vendor said it does not plan to disclose any potential competing offer “unless and until its board of directors has made a decision with respect to any potential superior proposal.”

Check back later with SDxCentral for more details and analysis on the deal.