VMware Enters Agreements to Acquire Pivotal Software and Carbon Black

By Chantal Polsonetti

Acquisition or Partnership

VMware Signs Definitive Agreement to Acquire Pivotal Software

VMware and Pivotal Software announced that the companies have entered into a definitive agreement under which VMware will acquire Pivotal for a blended price per share of $11.71, comprised of $15 per share in cash to Class A stockholders, and the exchange of shares of VMware’s Class B common stock for shares of Pivotal Class B common stock held by Dell Technologies, at an exchange ratio of 0.0550 shares of VMware Class B stock for each share of Pivotal Class B stock.  In total, the merger consideration represents an enterprise value for Pivotal of $2.7 billion.  Following the close of the transaction, VMware will be positioned to deliver a comprehensive enterprise-grade Kubernetes-based portfolio for modern applications.

VMware and Pivotal share a long history of collaboration and joint innovation, reflected in the co-development and launch of VMware Pivotal Container Service (PKS) in February of 2018.  VMware has increased its Kubernetes-related investments over the past year with the acquisition of Heptio, and the Kubernetes founders, to become one of the top three contributors to Kubernetes.  The combination of Pivotal’s developer experience and assets with VMware’s IT expertise and infrastructure is designed to help deliver a comprehensive portfolio of products, tools and services necessary to build, run and manage modern applications on Kubernetes infrastructure with velocity and efficiency.



VMware Enters Definitive Agreement to Acquire Carbon Black

VMware and Carbon Black announced that the companies have entered into a definitive agreement by which VMware will acquire Carbon Black in an all cash transaction for $26 per share, representing an enterprise value of $2.1 billion. The acquisition is intended to position VMware to provide a highly differentiated, intrinsic security cloud that will better protect enterprise workloads and clients through big data, behavioral analytics and AI.

Carbon Black’s cloud-native security platform leverages big data and behavioral analytics to provide endpoint protection against even the most advanced cyberattacks.  The combination of Carbon Black’s solutions with VMware’s security offerings, including AppDefense, Workspace ONE, NSX and SecureState, will reportedly create a modern security cloud platform for any application, running on any cloud, on any device.  This combined offering will provide customers advanced threat detection and in-depth application behavior insight to stop sophisticated attacks and accelerate responses. 

The distribution and enterprise reach of VMware and Dell is intended to further accelerate the adoption of Carbon Black in the enterprise, through both direct selling and partners, including leading managed security players, channel partners and system integrators.

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