Bulletin
Investor Alert

London Markets Close in:

Market Pulse Archives

Aug. 22, 2019, 5:20 p.m. EDT · CORRECTED

VMware to acquire Carbon Black, Pivotal Software

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    VMware Inc. (VMW)
  • X
    Pivotal Software Inc. (PVTL)
  • X
    Dell Technologies Inc. Cl C (DELL)

or Cancel Already have a watchlist? Log In

By Jeremy C. Owens

This article previously included an inaccurate figure for the blended per-share price of the Pivotal acquisition. It has been updated.

VMware Inc. /zigman2/quotes/209864107/composite VMW -1.13% announced two blockbuster acquisitions of public companies Thursday afternoon, one of which was expected. VMware will acquire corporate sibling Pivotal Software Inc. /zigman2/quotes/205113305/composite PVTL -0.03% , as expected after filings last week involving both companies' corporate parent, Dell Technologies Inc. /zigman2/quotes/203822527/composite DELL +0.27% The acquisition of security-software firm Carbon Black Inc. , though, was a surprise. Carbon Black went public last year at $19 a share for a valuation of more than $1 billion, and VMware has agreed to pay $26 a share for the company, which VMware said gives Carbon Black an enterprise value of $2.1 billion. VMware said it would pay a blended price of $11.71 a share for Pivotal, paying $15 a share in cash to regular shareholders and swapping VMware shares to Dell for Dell's shares of Pivotal at an exchange rate of 0.055 shares of VMware for each share of Pivotal. The enterprise value of Pivotal is $2.7 billion in that agreement, VMware said. VMware stock fell about 4% after the news was announced, which came in conjunction with second-quarter earnings. Pivotal stock gained more than 7% after closing at $13.70, and Carbon Black shares moved a bit higher after gaining 7.7% in the regular session to $24.50.

Read the full story:
VMware transformation speeds up with deals for Pivotal Software, Carbon Black

/zigman2/quotes/209864107/composite
US : U.S.: NYSE
$ 153.20
-1.75 -1.13%
Volume: 114,195
Oct. 14, 2019 11:13a
P/E Ratio
10.22
Dividend Yield
N/A
Market Cap
$63.32 billion
Rev. per Employee
$413,548
loading...
/zigman2/quotes/205113305/composite
US : U.S.: NYSE
$ 14.92
-0.0050 -0.03%
Volume: 272,110
Oct. 14, 2019 11:13a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.11 billion
Rev. per Employee
$261,118
loading...
/zigman2/quotes/203822527/composite
US : U.S.: NYSE
$ 50.44
+0.14 +0.27%
Volume: 208,640
Oct. 14, 2019 11:12a
P/E Ratio
15.37
Dividend Yield
N/A
Market Cap
$36.45 billion
Rev. per Employee
$624,972
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.