Menu
Cisco, Intel buy into VMware

Cisco, Intel buy into VMware

Cisco Systems plans to acquire a 1.6 percent equity stake in virtualisation software player VMware, mirroring a step Intel took earlier this month.

The investment is part of an upcoming initial public offering (IPO) of 10 percent of VMware's stock.

Cisco said it plans to buy US$150 million of VMware Class A common shares, which are owned at present by EMC, VMware's parent company. The move is subject to regulatory and other closing conditions. Once the investment has been made, Cisco will own around 1.6 percent of VMware's total outstanding common stock. According to an updated VMware S-1 filing with the U.S. Securities and Exchange Commission, Cisco will buy six million shares, valuing each VMware share at $25.

VMware is considering whether it will appoint a Cisco executive to its board of directors.

Cisco hopes taking a stake in VMware will help bring two companies closer together and result in more users adopting VMware virtualisation software and Cisco networking products. Cisco and VMware also announced they've agreed to collaborate on joint development and marketing.

EMC acquired VMware in January 2004 for $625 million and has run the company as a separate software subsidiary headed by Diane Greene, VMware's former president and CEO.


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags VMwareintelciscoDiane Greene EMC

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments