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Pivotal In Discussions With VMware Regarding Potential Business Combination

Pivotal Software, which offers a commercial solution based on the open-source Cloud Foundry platform, could be returning to the VMware family after it was initially spun out of EMC and VMware back in 2012.

In recent news, VMware said it is considering the purchase of Pivotal Software, which mentioned a price of $15 a share in cash.  Both companies are owned by Dell Technologies.  The information comes after it was disclosed in a Dell Technologies regulatory filing (Schedule 13D/A). 

In a statement, Pivotal said: 

Pivotal Software, Inc., a leading cloud-native platform provider, confirms that, through a Special Committee of its Board of Directors, it is in discussions with VMware, Inc. regarding a potential business combination, and we are proceeding to negotiate definitive agreements with regards to a transaction in which VMware would acquire all of the outstanding shares of Class A common stock of Pivotal for cash at a per share price equal to $15.00.

However, a definitive agreement between Pivotal and VMware has not been executed. There can be no assurances that a definitive agreement will be executed between the parties.

The foregoing information is being provided solely to acknowledge the public announcement on Schedule 13D/A filed by Dell Technologies Inc., Pivotal's and VMware's controlling stockholder. Pivotal does not intend to provide any further information as to developments, if any, in its discussions with VMware regarding a business combination unless and until a definitive agreement is executed.

VMware has since confirmed the talks, stating: "VMware regularly evaluates potential partnerships and acquisitions that would accelerate our strategy. Pivotal is a long-term strategic partner and we're already successfully collaborating to help enterprises in their application development and infrastructure transformation."

Upon VMware confirming the news, Pivotal's shares soared 70%.

VMware is renewing its efforts in the cloud native market.  The virtualization giant is taking on both cloud and containers, which is one reason why it has acquired the container integration start-up Heptio and the package application start-up Bitnami.  

Expect to hear more news with the company's annual event, VMworld, coming right around the corner.

Published Thursday, August 15, 2019 8:16 AM by David Marshall
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