VMware which happens to be the world’s largest virtualization software offering vendor has made it official that it is strengthening its stand in Cloud Security field by buying Pivotal Software and Carbon Black for $5 billion.
As per the details of the deal available to our Cybersecurity Insiders, Pivotal Software will be acquired for $2.7 Billion while Carbon Black Inc will be grabbed for $2 billion in cash.
Since Dell Technologies happens to be VMware’s parent company; it will occupy an equal percentage of share in both companies.
In brief, VMware offers cloud computing software and Pivotal Software happens to develop software tools for cloud services. Whereas, Carbon Black happens to be an analytics-based cloud security platform which helps companies thwart cyber attacks.
Highly placed sources from VMware said that the Software giant will be paying Carbon Black $26 per share in cash at a premium of over 6% for the rate proposed at Thursday close.
Both the deals are expected to be closed by January next year, and VMware hopes that the newly acquired companies will help in adding revenue to the former by the end of the next fiscal year.
Dell Technologies announced publicly yesterday that its shake in Pivotal will be exchanged for VMware shares. So, the stats provided by the regulatory filing state that Michael Dell’s company will own over 131.3 million shares of Pivotal while Palo Alto headquartered company is said to hold 44.2 million shares.