Today, in a move that is not surprising, VMware, Inc. announced that it had completed its acquisition of Pivotal Software, Inc. Pivot’s stock will be removed from the NYSE as the company becomes a wholly owned subsidiary of VMware. Pivotal was acquired for roughly $2.7 billion.
Today, in a move that is not surprising, VMware, Inc. announced that it had completed its acquisition of Pivotal Software, Inc. Pivot’s stock will be removed from the NYSE as the company becomes a wholly owned subsidiary of VMware. Pivotal was acquired for roughly $2.7 billion.
Pivotal was spun out of EMC back in 2012. Pivotal was mostly known for its cloud platform hosting and consulting services. In 2017 Pivotal launched its container service for the enterprise Pivotal Container Service (PKS). This was actually a co-announcement with VMware as the two companies were working very closely together. Pivotal has been updating PKS since its release becoming more and more entwined with VMware along the way.
With the acquisition, Pivotal will become core to VMware’s Tanzu portfolio of products and services. Tanzu, like PKS, focuses on Kubernetes. According to the companies, the combination of Pivotal’s developer-centric offerings with VMware’s upstream Kubernetes run-time infrastructure and management tools will deliver a comprehensive enterprise solution that enables dramatic improvements in developer productivity in the creation of modern applications.
Under the terms of the transaction, Pivotal’s Class A common stockholders are entitled to receive $15.00 per share cash for each share held (without interest and less applicable tax withholdings), and Pivotal’s Class B common stockholder, Dell Technologies, received approximately 7.2 million shares of VMware Class B common stock, at an exchange ratio of 0.0550 shares of VMware Class B common stock for each share of Pivotal Class B common stock.
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