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.
David Marshall is the founder of VMblog.com, one of the industry's longest-running independent publications covering modern data center technologies. What began as a focus on virtualization and cloud computing has expanded to cover the full spectrum of enterprise IT, including AI, security, and DevOps, making VMblog a trusted destination for vendor news, technology analysis, and industry commentary.Beyond publishing, David has spent his career at the intersection of technology and business, inventing, marketing, and launching a number of successful software companies and products, and building a reputation as a skilled marketing executive in the enterprise IT space.David is also a published author, having written two well-regarded books on virtualization and served as technical editor for two "For Dummies" titles covering virtualization and cloud computing. He co-founded CloudCow.com, a publication focused on cloud computing, and has been named a VMware vExpert every year since 2009, one of the longest continuous honoree streaks in the program's history.Connect with David on LinkedIn: https://www.linkedin.com/in/davidmarshall/
