Broadcom Sells VeloCloud SD-WAN Business to Arista Networks

On July 1, 2025, Broadcom Inc. (NASDAQ: AVGO), a prominent player in the semiconductor and infrastructure software sector, confirmed the sale of its VeloCloud® SD-WAN business to Arista Networks (NYSE: ANET), a leader in cloud and artificial intelligence (AI) networking solutions. The deal, which was facilitated by the law firm O'Melveny & Myers LLP, was officially announced just days before, on June 28, 2025. This acquisition represents a strategic move for Arista as it seeks to enhance its offerings in the rapidly evolving landscape of network solutions, particularly those leveraging AI technologies.

Broadcom, headquartered in San Jose, California, has established itself as a significant entity in various critical markets, including data centers, networking, and enterprise software. The VeloCloud portfolio, known for its cloud-delivered SD-WAN solutions, integrates security features that are increasingly crucial in today's digital environment. According to Alan Davidson, Chief Information Officer of Broadcom, the VeloCloud edge enhances and scales the enterprise WAN network significantly.

The legal team from O'Melveny, led by Adit Khorana, partner and chair of the firm’s Technology Transactions Group, played a pivotal role in the transaction. Khorana emphasized the importance of this acquisition in the context of the ongoing digital transformation across industries, stating, "The integration of VeloCloud into Arista's existing solutions will facilitate the delivery of robust, secure, and efficient networking services to clients worldwide."

Arista Networks, based in Santa Clara, California, has been recognized for its innovative products and solutions, particularly those aimed at AI-driven networking. The acquisition of VeloCloud is anticipated to further bolster Arista's capabilities in delivering automated and intelligent networking solutions. The company recently highlighted its new AI-driven products during a press briefing, revealing that the VeloCloud integration will enable enhanced operational ease through features like zero-touch operations and proactive monitoring.

Furthermore, Arista is positioned as a visionary in the Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure, having received accolades for its execution capabilities. This recent acquisition aligns with the broader trend of organizations increasingly adopting technologies that connect data strategies with distributed data stores, ensuring networks are not only reliable but also secure and easy to operate.

The implications of this transaction extend beyond mere corporate strategy; they reflect a significant shift in how businesses are approaching network solutions amid the growing demands of AI and cloud computing. With Arista's acquisition of VeloCloud, organizations can expect an expanded suite of services that improve both the efficiency and security of their networking capabilities. As businesses continue to navigate the complexities of digital transformation, the integration of advanced solutions like VeloCloud will likely become a cornerstone of competitive strategy in the technology sector.

In conclusion, the sale of Broadcom's VeloCloud SD-WAN portfolio to Arista Networks marks a critical step in the evolution of networking solutions, with both companies poised to capitalize on the growing demands for secure, efficient, and AI-driven network services. As the technology landscape evolves, the success of this acquisition will be closely monitored by industry analysts and competitors alike.