For Pivotal, the transaction represented an enterprise value of around $2.7 billion.
VMware, a US-based cloud infrastructure and digital workspace technology company, recently announced the completion of its acquisition of Pivotal Software, a US-based provider of cloud platform hosting and consulting services. For each share held, Pivotal’s Class A common stockholders can receive $15.00 per share cash, as per the terms of the transaction. Dell Technologies, a Class B common stockholder of Pivotal, received around 7.2 million shares of VMware Class B common stock. For each share of Pivotal Class B common stock, it received 0.0550 shares of VMware Class B common stock – this was the exchange ratio considered.
“Our company has fundamentally changed how the biggest brands in the world manage and build software with a focus on developer productivity through development techniques and platform abstractions and also connecting the business with the developer. Combining VMware and Pivotal offers the industry’s most comprehensive application platform and is a win for VMware, a win for our company, and a win for our customers. Pivotal is excited for teaming up with VMware for helping more number of enterprises to become like modern software companies by adopting Lean and DevOps techniques developed by the startup community and internet giants,” said Pivotal’s Senior VP, Customer Success, Edward Hieatt.
Pivotal’s offerings will be core to VMware Tanzu
“It is my pleasure to announce Ray O’Farrell as the leader of the new Modern Applications Platform business unit of VMware – uniting the VMware and Pivotal Cloud Native Applications teams. And as Pivotal is now part of our company, I want to thank Pivotal’s leadership team for building a great company. Together, we are poised to be the leading enabler of Kubernetes having a deep understanding of developers as well as operators,” said CEO of VMware, Pat Gelsinger.
The acquisition transaction valued Pivotal at nearly $2.7 billion. Pivotal will operate as a wholly owned subsidiary of VMware. Its offerings will be core to VMware’s Tanzu portfolio of products and services that help customers in transforming the way they manage, run, and build their most significant applications, with Kubernetes functioning as the common infrastructure substrate.