VMware snags Carbon Black and Pivotal for $4.8B
On the same day as its second-quarter earnings, VMware announced it's buying Carbon Black and Pivotal for a combined value of $4.8 billion.
The deals, which are VMware's largest to date, will enable VMware to be a stronger competitor in the hybrid cloud infrastructure and security market sectors.
With Pivotal, VMware said it would be able to deliver an integrated modern apps portfolio combining Pivotal’s next-generation developer platform and VMware’s Kubernetes portfolio.
Carbon Black, which was founded in 2002, provides anti-malware and endpoint security products that can monitor a company's devices to see if they have been hacked. VMware plans to build a next-generation security cloud with Carbon Black’s protection suite and VMware’s other security assets. Adding these companies to VMware’s stable will "allow VMware to deliver software solutions that enable customers to build, run, manage, connect and protect any app, on any cloud and any device," VMware said in its press release.
According to CFTN, Carbon Black hired Morgan Stanley earlier this month to explore opportunities to sell itself. CNBC reported that IBM and Cisco were also interested in acquiring Carbon Black.
Carbon Black shareholders will get $26 per share in cash from VMware for a total of $1.9 billion in cash. The price per share is 14% higher than the stock’s $22.75 per share closing price on Wednesday.
Dell Technologies owns controlling stakes in both VMware and Pivotal, which made that deal a bit more complicated. VMware and Pivotal both said last week that they were exploring the sale of Pivotal to VMware.
VMware said that it’s buying Pivotal for a blended price per share of $11.71, including $15 per share in cash to holders of Pivotal’s Class A stock, and exchange of VMware’s Class B common stock for Pivotal Class B shares owned by Dell. The ratio is 0.0550 shares of VMware’s Class B stock for every share of Pivotal’s Class B stock. VMware is paying $800 million in cash for Pivotal, and Dell will now own 81.09% of VMware as a result of the deal.
Pivotal, which has made its mark commercializing the open-source Cloud Foundry platform, was spun out of EMC Corporation, which is now Dell EMC, and VMware in 2013. Both VMware and Dell EMC contributed assets to Pivotal.
Pivotal went public in April of last year, but shares of its stock have declined 66% over the past year. After issuing guidance that was lower than analysts' expectations, Pivotal's stock dropped 41% on June 5.
“Building on another solid quarter, we are thrilled about announcing our intent to acquire Pivotal and Carbon Black,” said Pat Gelsinger, chief executive officer of VMware, in a statement. “These acquisitions address two critical technology priorities of all businesses today — building modern, enterprise-grade applications and protecting enterprise workloads and clients. With these actions, we meaningfully accelerate our subscription and SaaS offerings and expand our ability to enable our customers’ digital transformation.”
VMware has some heavy lifting ahead for the integration of companies that it has recently purchased. Yesterday VMware announced it had bought security startup Intrinsic, and on Friday VMware announced it was buying privately held Veriflow to beef up its pervasive network monitoring and troubleshooting capabilities.
The company announced last month it was buying Uhana, which provides AI and machine learning optimization for mobile networks. VMware also bought virtual application delivery controller (ADC) vendor Avi Networks earlier this summer and Bitfusion in July. Using machine learning, Bitfusion can help businesses optimize their workloads with GPU accelerators.
In the second quarter of its 2020 fiscal year, VMware reported $1.60 in earnings per share, excluding certain items, on $2.44 billion in revenue. Analysts polled by Refinitiv had been expecting $1.55 in earnings per share, excluding certain items, on $2.43 billion in revenue for the quarter.
source fiercetelecom
Industry: Cyber Security
Latest Jobs
-
- CONTRACT SOC Manager. London / Birmingham. URGENT Immediate role.
- London
- N/A
-
REF7847 Contract SOC Manager. SC cleared, London / Birmingham. Initial 3 month Contract. SOC Manager needed to for an URGENT 3-4 month CONTRACT. SC clearance is essential. The project is to aid in the setup, implementation and management of resources to help with the initial stand up stages of a new SOC within a greenfield site. This is a short term contract role whilst a permanent hire is brought on over the coming 3 to 4 months. Experience engaging with and managing client stakeholder relationships as well as 3rd party relationships is critical. The role will involve; setting up, implementing and fine tuning the various initial stages of a SOC environment. Experience establishing and building out technical process / operational capability, managing of technical teams (analysts, engineers and architects, creation of policy / playbooks, fine turning is key. SPLUNK is the tooling of choice… Interviewing immediately. Set up a call with me today on https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Direct contact details Chris.Holt@dclsearch.com or 07884666351
-
- SPLUNK Level 3 SOC Consultant, SIEM Splunk, London / Birmingham
- Birmingham
- 55000
-
REF CH7825 Level 3 SOC Consultant, SIEM Splunk, London / Birmingham £55,000 + Level 3 SOC Consultant, SIEM SPLUNK needed. Security Clearance. Permanent role Level 3 SOC Consultant, SIEM SPLUNK needed to join a public sector client. The ability to achieve SC clearance is essential. MUST have experience working with SPLUNK ideally to an Advanced Power User level. Splunk Enterprise Security (ES) knowledge and hands on experience highly desirable. The role will include, but not be limited to; managing and handling incidents end to end, supporting and mentoring level 1 / level 2 staff, supporting the SOC manager in the delivery of the SOC roadmap, engaging with the client stakeholders (other technical teams) as and where needed, use case development, advanced search and reporting etc. The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt use this calendy link https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Chris.Holt@dclsearch.com
-
- Aspiring Cyber Partner. Business lead, market maker.
- London
- 150000+
-
Aspiring Cyber Partner (management consultancy) with Cyber specialism into Healthcare, Utilities and or Public Sector. Working with new and existing clients to help them solve, transform or evolve their cyber capabilities. MUST have; A proven management consultancy background in cyber. A history of identifying and closing new business opportunities. Currently Revenue generating / must be able to demonstrate recent wins. Client facing to board level with international businesses. Team leadership / mentoring experience. Extensive cyber industry experience. Digital transformation, Start-up environments etc. Experienced presenter at industry events, to be the public face of a business / capability. Breadth of knowledge across Cyber security. Service definition / creation. Would consider a senior director with experience delivering the above looking to step up. All conversations kept in confidence. To arrange a discreet call book a time to speak in my diary via https://calendly.com/chris-holt/cyber-partner-call Chris.Holt@dclsearch.com
-
- Internal Security Auditor, Level 1 Service Provider (ISO27001)
- London
- Upto 65,000 plus benefits
-
Internal Security Auditor ISO 27001, PCI, needed to join a Cyber team within this expanding Fintech business. The Internal Security Auditor will have end to end responsibility for planning, delivering, remediating any findings etc. Experience working within financial services is highly desirable. This Is a great time to join a newly formed and growing Cyber team within a rapidly expanding fintech, that is taking a major share of its market. We are looking for someone with experience, (but not to be limited to) a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling etc. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection.