NEW YORK: VMware Inc and Pivotal Software Inc are negotiating a deal for VMWare to acquire Pivotal, according to a regulatory filing from Dell Technologies Inc, valuing Pivotal, a maker of software development and management tools, at about $4 billion.
Pivotal shares jumped 63 per cent to $13.60, while shares of VMWare were down about 3 per cent at $148.25 in extended trading. Dell is the controlling stockholder for both the companies.
Special board committees at both companies are negotiating an agreement to acquire all of the outstanding shares of Class A stock of Pivotal for cash at $15 a share, according to a regulatory filing.
The offer price represents an 81 per cent premium to Pivotal’s Wednesday close. Shares of Pivotal, which provides tools for software developers working with cloud services from different companies, have fallen 49 per cent this year. — Reuters
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