VMware, Inc. (NYSE: VMW), a leading innovator in enterprise
software, today announced it has completed the acquisition of
Pivotal Software, Inc. (“Pivotal”), a leading cloud-native platform
provider. As a result of the completion of the acquisition,
Pivotal’s Class A common stock was removed from listing on the New
York Stock Exchange with trading suspended prior to the open of the
market today, and Pivotal will now operate as a wholly owned
subsidiary of VMware. The transaction represented an enterprise
value for Pivotal of approximately $2.7 billion.
Pivotal’s offerings will be core to the VMware Tanzu portfolio
of products and services designed to help customers transform the
way they build, run and manage their most important applications,
with Kubernetes as the common infrastructure substrate. The
combination of Pivotal’s developer-centric offerings with VMware’s
upstream Kubernetes run-time infrastructure and management tools
will deliver a comprehensive enterprise solution that enables
dramatic improvements in developer productivity in the creation of
modern applications. VMware is able to offer product building
blocks and integrated solutions that are tested and proven with
technical expertise that customers need to accelerate software
delivery across data center, cloud and edge environments.
“It's my pleasure to announce Ray O'Farrell as the leader of
VMware’s new Modern Applications Platform business unit—uniting the
Pivotal and VMware Cloud Native Applications teams,” said Pat
Gelsinger, CEO, VMware. “And as Pivotal is now part of VMware, I
want to thank the Pivotal leadership team for building a great
company. Together, we’re poised to be the leading enabler of
Kubernetes with a deep understanding of both operators and
developers.”
“Digital transformation and the applications that drive it
should not be restricted only to cloud and software giants,” said
Ray O’Farrell, executive vice president and general manager, Modern
Applications Platform Business Unit, VMware. “We believe that
modern application development solutions and practices need to be
easily accessible to everyday enterprises across the globe. With
Pivotal’s developer capabilities as the foundation, we’ll focus on
delivering consumable, enterprise-ready cloud native offerings to
customers to help them achieve better business outcomes.”
“Pivotal has fundamentally changed how the world’s biggest
brands build and manage software with a focus on developer
productivity through platform abstractions and development
techniques as well as connecting the business with the developer,”
said Edward Hieatt, senior vice president, customer success,
Pivotal. “The combination of Pivotal and VMware offers the most
comprehensive application platform in the industry and is a win for
our customers, a win for Pivotal, and a win for VMware. We’re
excited to team up with VMware to help more enterprises become like
modern software companies by adopting DevOps and Lean techniques
developed by internet giants and the startup community.”
Numerous mutual customers including Raytheon have reacted
positively to the news of the acquisition. Here is Raytheon’s
impression of the combination of VMware and Pivotal:
“By working with both Pivotal and VMware, we’ve been able to
completely transform how we write software for our military and
government customers,” said Todd Probert, Vice President for C2,
Space and Intelligence at Raytheon. “Combining these companies
under a single umbrella is going to make it possible for my team to
get code to our customers even faster and easier.”
Under the terms of the transaction, Pivotal’s Class A common
stockholders are entitled to receive $15.00 per share cash for each
share held (without interest and less applicable tax withholdings),
and Pivotal’s Class B common stockholder, Dell Technologies,
received approximately 7.2 million shares of VMware Class B common
stock, at an exchange ratio of 0.0550 shares of VMware Class B
common stock for each share of Pivotal Class B common stock.
About VMware VMware software powers the world’s
complex digital infrastructure. The company’s cloud, networking and
security, and digital workspace offerings provide a dynamic and
efficient digital foundation to customers globally, aided by an
extensive ecosystem of partners. Headquartered in Palo Alto,
California, VMware is committed to being a force for good, from its
breakthrough innovations to its global impact. For more
information, please
visit https://www.vmware.com/company.html.
About Pivotal Pivotal combines our cloud-native
platform, developer tools, and unique methodology to help the
world’s largest companies transform the way they build and run
their most important software applications. Our technology is used
by Global 2000 companies to achieve strategic advantages in
software development and IT operations. Learn more at
pivotal.io.
Additional Resources
- For an executive perspective from Ray O’Farrell, read the post:
VMware + Pivotal: Combining the Skills, People and Leadership to
Deliver Modern Apps to the Enterprise
- For an executive perspective from Alex Wang, read the post:
Reflections on the Close of the Pivotal and Carbon Black
Acquisitions
- Learn more about the initial announcement here: VMware Signs
Definitive Agreement to Acquire Pivotal Software
VMware and Tanzu are registered trademarks or trademarks of
VMware, Inc. or its subsidiaries in the United States and other
jurisdictions.
Source: Pivotal Investor Relations
Contacts Eloy OntiverosVMware Global
Communications eontiveros@vmware.com 1-650-427-6145
Paul Ziots VMware Investor Relations pziots@vmware.com
1-650-427-3267
Pivotal, Media: press@pivotal.io
Forward-Looking StatementsThis press release
contains forward-looking statements including, among other things,
statements regarding the planned combination of Pivotal technology
with VMware’s Tanzu portfolio, the expected technical advances
available from such combination and its potential benefits to
developers and customers and customer acceptance of the enhanced
Tanzu portfolio. These forward-looking statements are subject
to the safe harbor provisions created by the Private Securities
Litigation Reform Act of 1995. Actual results could differ
materially from those projected in the forward-looking statements
as a result of certain risk factors, including but not limited to:
(1) the risk that Pivotal’s integration with VMware will not be
successful; (2) disruptions from the transaction that may make it
more difficult to maintain business and operational relationships;
(3) efforts from competitors to disrupt VMware and Pivotal’s
relationships with existing and potential mutual customers; (4) the
ability to efficiently integrate Pivotal’s customer relationships,
go-to-market activities and service and support activities with
VMware’s; (5) competitive factors, including but not limited to
pricing pressures, industry consolidation, entry of new competitors
into the modern application development and solutions industries,
and new product and marketing initiatives by VMware’s competitors;
(6) VMware’s customers’ ability to transition to new products and
computing strategies such as modern application development and
solutions; (7) VMware’s ability to enter into, maintain and extend
strategically effective partnerships and alliances; (8) the
uncertainty of customer acceptance of emerging technology; (9)
rapid technological changes in the virtualization software and
cloud, end user, security, modern application development and
mobile computing industries; (10) changes to product and service
development timelines; (11) VMware’s relationship with Dell
Technologies and Dell’s ability to control matters requiring
stockholder approval, including the election of VMware’s board
members and matters relating to Dell’s investment in VMware; (12)
VMware’s ability to protect its proprietary technology; (13)
VMware’s ability to attract and retain highly qualified employees;
(14) disruptions resulting from key management changes; (15)
changes in VMware’s financial condition; and (16) risks associated
with cyber-attacks, information security and privacy. These
forward-looking statements are made as of the date of this press
release, are based on current expectations and are subject to
uncertainties and changes in condition, significance, value and
effect as well as other risks detailed in documents filed with the
Securities and Exchange Commission, including VMware’s most recent
reports on Form 10-K and Form 10-Q and current reports on Form 8- K
that we may file from time to time, which could cause actual
results to vary from expectations. VMware assumes no obligation to,
and does not currently intend to, update any such forward-looking
statements after the date of this release.
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