Broadcom (NASDAQ:AVGO) was in focus on Wednesday as the software and semiconductor firm expanded its deal with Lloyds Banking Group to help the financial firm accelerate its digital transformation.
As part of the deal, Lloyds will use more of Broadcom’s infrastructure software portfolio, including VMware Cloud Foundation and mainframe solutions.
“Broadcom’s strategic partnership with Lloyds Banking Group has been strengthened by the addition of VMware into our existing infrastructure software portfolio, which includes our mainframe solutions,” said Broadcom executive Luigi Freguia in a statement. “This promotes our goal to empower Lloyds Banking Group to transform their infrastructure and solidify their leadership as the UK’s largest digital bank.”
Broadcom completed its acquisition of VMware in 2023. At $69B, it was one of the most expensive acquisitions in the history of the tech sector.
The deal should provide Lloyd with the capability to provide faster and more reliable digital services to its 28M customers and businesses in the U.K.
“Upgrading our infrastructure allows us to continue to provide fast and reliable digital banking for our customers, whether they’re making payments, applying for a loan, or checking their balance,” said Ron van Kemenade, Group Chief Operating Officer at Lloyds Banking Group. “It means our customers get a first-class service today, with a platform that can easily scale and support new products and innovations in the future.”
Broadcom shares fell 1% in premarket trading.