VMware, Inc. announced that the company has entered into a Stock Purchase Agreement with Dell Technologies, Inc., under which VMware agreed to purchase $300 million worth of VMware Class A Common Stock currently held by a Dell subsidiary.
This $300 million Stock Purchase Agreement is part of the company's previously disclosed $1.2 billion buyback authorization through the end of fiscal 2018.
Separately, Dell Technologies plans to use the $300 million proceeds to repurchase the Dell tracking stock for VMware, DVMT.
The $300 million stock purchase is expected to be completed by the end of VMware's fiscal Q2 2018 ending on August 4, 2017. The impact of the $300 million Stock Purchase Agreement on VMware's previously provided guidance for fiscal Q1 2018 and full year fiscal 2018 diluted share count is not expected to be material. A previously announced $500 million Stock Purchase Agreement with Dell Technologies, Inc. was completed in early fiscal Q1 2018.