Date
18 September 2019
VMware, led by CEO Pat Gelsinger, has made two acquisitions in a bid to serve corporate clients better. Photo: Bloomberg
VMware, led by CEO Pat Gelsinger, has made two acquisitions in a bid to serve corporate clients better. Photo: Bloomberg

VMware acquires software firms in deals worth US$4.8 bln

California-based VMware has acquired two providers of cloud security and cloud developer services in separate deals valued at US$4.8 billion in total.

One deal involved the acquisition of Pivotal Software, while the other marked the purchase of Carbon Black.

Dell Technologies is the controlling stakeholder of both VMware and Pivotal Software, Reuters noted.

VMWare makes cloud computing software, while Pivotal provides tools for software developers working on cloud services.

Carbon Black has a cloud security platform that uses big data and behavioral analytics to protect against cyber-attacks.

VMware will pay US$26 per share for Carbon Black, marking a premium of 6 percent over its Thursday close, according to Reuters.

The company expects Carbon Black and Pivotal to meaningfully add to its revenue in the first year after closing the deals by January next year.

Dell had taken Pivotal public last year. With the latest deal, Dell’s stake in Pivotal will be exchanged for VMware shares.

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