Dell Terminates Agreement With VMware After Broadcom Acquisition

Dell Technologies said it had notified Broadcom, which owns VMware, that it was terminating the commercial framework agreement. – Sergio Flores/Bloomberg News

Dell Technologies ended a deal with former subsidiary VMware to distribute its products.

Most Read from The Wall Street Journal

The PC-maker said in a regulatory filing Tuesday that it had notified Broadcom, which owns VMware, that it was terminating the commercial framework agreement between the two parties.

The agreement between Dell and VMware provided for Dell to continue distributing VMware’s products and services after the virtualization software company’s 2021 spinoff.

Dell also continues to integrate VMware’s offerings with Dell’s and sell them to customers under the deal.

Dell said that under the agreement, either party can terminate the deal if there is a change in control of the other party.

Semiconductor maker and software company Broadcom closed its $69 billion deal to acquire VMware in November.

Dell said the agreement “provides a framework for various commercial activities between the two parties,” including Dell distributing VMware products and services and the two companies collaborating on solutions and go-to-market activities..

Write to Ben Glickman at [email protected]

Most Read from The Wall Street Journal