Cisco to Acquire Stake in VMware
Cisco to Acquire Stake in VMware
July 30th, 2007: Cisco systems announced on Friday that it would join Intel in acquiring a stake in VMware.
Cisco has mirrored Intel's move into acquiring an equity stake of virtual software company VMware. The deal will see Cisco purchase a 1.6% stake in VMware at a cost of US$150 million. VMware has agreed to consider the appointment of a Cisco executive to its board of directors at a future date as part of the deal.
The investment is aimed at bringing the two companies closer together, with hopes that it will increase the combined take up Cisco networking and VMware visualisation products.
On July 13, IDM reported that Intel was making there own major investment into the virtualisation company with a US$218 million investment. This will see Intel acquire a 2.5 per cent stake in the company. The Intel and Cisco announcements are a result of VMware’s parent company, EMC announcing their intention to sell off a 10% stake in the company back in January of this year.
Finalisation of the plan is subject to customary regulatory and other closing conditions including Hart-Scott-Rodino review