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VMware Acquires Carbon Black and Pivotal for $2.1B and $2.7B Respectively

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by Janis Rijnieks · 2 min read
VMware Acquires Carbon Black and Pivotal for $2.1B and $2.7B Respectively
Photo: Carbon Black, Inc. / Twitter

VMware yesterday announced the acquisition of Pivotal for $2,7 billion and Carbon Black for $2,1 billion! Together the company has nearly spent $5 billion in order to expand its products and services.

In recent news, VMware which is a publicly traded software company announced two very significant purchases. The software company bought Pivotal which is an American multinational software and services company and Carbon Black which is a publicly traded security company focusing on modern cloud-native workloads. Both companies together are in a valuation a little under $5 billion. 

“Building on another solid quarter, we are thrilled about announcing our intent to acquire Pivotal and Carbon Black,” commented VMware’s CEO Pat Gelsinger. “These acquisitions address two critical technology VMware, Inc. 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.”

While experts point out that these two are completely different companies, they both have a clear focus on modern workloads. Pivotal can provide tools for software developers who are working on cloud services, while Carbon Black has a cloud security platform, and they are using big data and behavioral analytics in order to fight against cyberattacks.

Also, earlier this year, VMware acquired Bitnami which is a library of installers or software packages for web applications and development stacks as well as virtual appliances.

Carbon Black, which was founded in 2002, went public only recently in 2018. When the company held its IPO, it reached a valuation of $1,25 billion. Also, its stock this year traded around $13, but managed to recover to over $21. But VMware will pay $26 per share which is nearly 6% more than its stock price.

“By bringing Carbon Black into the VMware family, we are now taking a huge step forward in security and delivering an enterprise-grade platform to administer and protect workloads, applications and networks,” commented Pat Gelsinger.

However, when speaking about Pivotal, the company was already originally incubated at VMware and EMC Corporation. This acquisition will bring a new developer platform to VMware. With this platform, it will become easier to to write, test and deploy applications for developers.

“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,” explained Gelsinger.

The company CEO expects these two additions to start making money by 2020.

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Janis Rijnieks

Janis is a cryptocurrency enthusiast and a bitcoin adherent. He has a background in video production, but for the past couple of years, he is a full-time crypto researcher and writer. He has a good understanding of multiple cryptocurrencies and loves to cover daily news. He considers himself a semi-bitcoin maximalist but always is open to any kind of new ideas that could be put on the blockchain. In his free time, he likes skateboarding and cars.

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