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VMware Buys a 5% Stake in Terremark

VMware is buying a 5 percent stake in IT services provider Terremark Worldwide.  VMware will purchase 4 million shares in Terremark at $5 per share for a total investment of $20 million. 

The IT services firm sells VMware software, earning fees on hardware sales, consulting and other services.  The two companies have worked together for years.  And VMware recently named the company as a "service provider of the year" for 2009.

Terremark announced the news as it issued their revenue outlook which was below market estimates.  They estimated revenue for its first quarter ending June 30 of $63 million to $66 million, below the average forecast of $70 million.  It projected full-year revenue of $290 million to $300 million, below the average forecast of $302 million.

Terremark has been public since mid-2000 and was north of a $30 stock briefly on a split-adjusted basis.  Its 52-week range is $1.85 to $7.67. 

Published Tuesday, May 26, 2009 7:06 PM by David Marshall
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