VMware to Acquire Pivotal
August 26, 2019
Share this

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.

The Board of Directors of each of VMware and Pivotal have approved this transaction, following the recommendations of special committees composed of independent directors of each company.

Following the close of the transaction, VMware will be positioned to deliver the most 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 will 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.

“Kubernetes is emerging as the de facto standard for multi-cloud modern apps. We are excited to combine Pivotal’s development platform, tools and services with VMware’s infrastructure capabilities to deliver a comprehensive Kubernetes portfolio to build, run and manage modern applications,” said Pat Gelsinger, CEO of VMware. “Importantly, adding Pivotal to our platform, accelerates our broader Any Cloud, Any App, Any Device vision and reinforces our leadership position in modern multi-cloud IT infrastructure.”

“The time is ideal to join forces with VMware, an industry leader who shares our commitment to open source community contributions and our focus on adding developer value on top of Kubernetes,” said Rob Mee, CEO, Pivotal. “VMware has a proven track record of helping organizations run and manage consistent infrastructure in support of mission critical applications, and our two companies have already built a strong foundation on our successful VMware PKS collaboration. We look forward to continuing our work with VMware to provide even more value to customers building modern applications.”

“The VMware Board of Directors is committed to creating value for all stockholders,” said Karen Dykstra, Chairperson of the Special Committee of VMware’s Board of Directors. “After a thorough and independent evaluation with its advisors, and working closely with the VMware management team, the Special Committee recommended the Board approve this transaction with Pivotal given its strong strategic and long-term value to the company and its customers.”

Share this

The Latest

November 14, 2019

A brief introduction to Applications Performance Monitoring (APM), breaking it down to a few key points, followed by a few important lessons which I have learned over the years ...

November 13, 2019

Research conducted by ServiceNow shows that Gen Zs, now entering the workforce, recognize the promise of technology to improve work experiences, are eager to learn from other generations, and believe they can help older generations be more open‑minded ...

November 12, 2019

We're in the middle of a technology and connectivity revolution, giving us access to infinite digital tools and technologies. Is this multitude of technology solutions empowering us to do our best work, or getting in our way? ...

November 07, 2019

Microservices have become the go-to architectural standard in modern distributed systems. While there are plenty of tools and techniques to architect, manage, and automate the deployment of such distributed systems, issues during troubleshooting still happen at the individual service level, thereby prolonging the time taken to resolve an outage ...

November 06, 2019

A recent APMdigest blog by Jean Tunis provided an excellent background on Application Performance Monitoring (APM) and what it does. A further topic that I wanted to touch on though is the need for good quality data. If you are to get the most out of your APM solution possible, you will need to feed it with the best quality data ...

November 05, 2019

Humans and manual processes can no longer keep pace with network innovation, evolution, complexity, and change. That's why we're hearing more about self-driving networks, self-healing networks, intent-based networking, and other concepts. These approaches collectively belong to a growing focus area called AIOps, which aims to apply automation, AI and ML to support modern network operations ...

November 04, 2019

IT outages happen to companies across the globe, regardless of location, annual revenue or size. Even the most mammoth companies are at risk of downtime. Increasingly over the past few years, high-profile IT outages — defined as when the services or systems a business provides suddenly become unavailable — have ended up splashed across national news headlines ...

October 31, 2019

APM tools are ideal for an application owner or a line of business owner to track the performance of their key applications. But these tools have broader applicability to different stakeholders in an organization. In this blog, we will review the teams and functional departments that can make use of an APM tool and how they could put it to work ...

October 30, 2019

Enterprises depending exclusively on legacy monitoring tools are falling behind in business agility and operational efficiency, according to a new study, Prevalence of Legacy Tools Paralyzes Enterprises' Ability to Innovate conducted by Forrester Consulting ...

October 29, 2019

Hyperconverged infrastructure is sometimes referred to as a "data center in a box" because, after the initial cabling and minimal networking configuration, it has all of the features and functionality of the traditional 3-2-1 virtualization architecture (except that single point of failure) ...