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VMWare in talks to purchase Pivotal software; Both are controlled by Dell



VMware Inc and Pivotal Software Inc are negotiating an agreement to acquire Pivotal on Wednesday. This is the result of a regulatory filing by Dell Technologies Inc in which Pivotal, a software development and management tool manufacturer, valued approximately US $ 4 billion.

  The Pivotal Software logo is pictured on the floor of the New York Stock Exchange in Manhattan.

FILE PHOTO: The Pivotal Software logo is pictured on the New York Stock Exchange floor in Manhattan New York City, New York, USA, April 20, 2018. REUTERS / Brendan McDermid

REUTERS: VMware Inc and Pivotal Software Inc Negotiate for VMWare to Acquire Pivotal On Wednesday, Pivotal, a maker of software development and management tools, announced that it was investing around $ 4 billion Valued US dollars.

Pivotal shares rose 63 percent to $ 13.60, while VMWare shares in extended trading fell approximately 3 percent to $ 148.25. Dell is the controlling shareholder for both companies. Dell's shares fell 1.65 percent to $ 47.80 on Wednesday after the stock market trading.

In both companies, special board committees are negotiating an agreement to acquire all outstanding Class A shares of Cash Pivotal for $ 15 per share, according to a regulatory filing.

The offer price corresponds to a premium of 81 percent on the Wednesday close of Pivotal. Pivotal's share of tools for software developers working with cloud services from various companies has dropped 49 percent this year.

VMWare provides cloud computing and virtualization software and services.

Pivotal confirmed that it was discussing with VMWare However, a final agreement between the companies was not reached.

The VMware Special Committee called on Dell to exchange Class B Pivotal Classes for VMware Class A

Shares

The Special Committee discussed an exchange ratio to be agreed, such as the applications for approval showed.

Michael Dell and Dell owned 131.3 million shares of Pivotal Class B stock, excluding the 44.2 million shares of Pivotal Class B stock from VMware, after filing.

(Report by Ankur Banerjee in Bengaluru, edited by Cynthia Osterman)


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