EMC Corporation has signed a definitive agreement to acquire VMware, a privately held software company and leader in Intel-based virtual computing software, for $635 million in cash. The acquisition is subject to customary closing conditions, regulatory approvals and is expected to be completed early next year.
Upon completion of the acquisition, EMC plans to operate VMware as a software subsidiary of EMC, headquartered in Palo Alto, California, and led by Diane Greene, VMware’s current President and CEO.
According to EMC, the acquisition of VMware will play a key role in the company’s strategy to help customers lower their costs and simplify their operations by deploying virtualisation technologies to create a single pool of available storage and computing resources.
VMware’s ‘Virtual Information Infrastructure’ enables multiple operating systems, including Microsoft Windows, Linux and NetWare, to run simultaneously and independently on the same Intel-based server or workstation and move live applications across systems with no disruption to business operations.