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VMware Completes Acquisition of Pivotal for $2.7 Billion


VMware has completed the acquisition of Pivotal Software, a cloud-native platform provider. Following the acquisition, Pivotal’s Class A common stock was removed from listing on the New York Stock Exchange. Pivotal will now operate as a wholly owned subsidiary of VMware. The transaction represented an enterprise value for Pivotal of approximately $2.7 billion.

Pivotal offers a leading developer-centric platform, tools and services that accelerate modern app development. Additionally, Pivotal is a major contributor to the Spring developer framework, which sees more than 75 million downloads per month. The company fully embraced Kubernetes with the launch of Pivotal Spring Runtime for Kubernetes and Pivotal Application Service for Kubernetes.

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.

According to VMware, Pivotal’s offerings will be core to the VMware Tanzu portfolio of products and services designed to help customers transform the way they build, run and manage their most important applications, with Kubernetes as the common infrastructure substrate. 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 improvements in developer productivity in the creation of modern applications. VMware is able to offer product building blocks and integrated solutions that are tested and proven with technical expertise that customers need to accelerate software delivery across data center, cloud and edge environments.

“It's my pleasure to announce Ray O'Farrell as the leader of VMware’s new Modern Applications Platform business unit—uniting the Pivotal and VMware Cloud Native Applications teams,” said Pat Gelsinger, CEO, VMware.

According to VMware, numerous mutual customers including Raytheon have reacted positively to the news of the acquisition. “By working with both Pivotal and VMware, we’ve been able to completely transform how we write software for our military and government customers,” said Todd Probert, Vice President for C2, Space and Intelligence at Raytheon. “Combining these companies under a single umbrella is going to make it possible for my team to get code to our customers even faster and easier.”

For more information, visit www.vmware.com and https://pivotal.io.


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