Cloud computing and virtualisation software firm VMware announced today, via a press release, that it is currently negotiating a possible takeover of Pivotal Software, a company perhaps best known for its commercialisation of the Cloud Foundry platform.
The price currently being thrown around is significantly higher than its current price on the market, the media are saying. If the deal goes through (which is still a relatively long shot, apparently), VMware would purchase Pivotal Class A stock for $15 per share. That is basically Pivotal’s IPO price, and quite higher than its current price of $8.30 per share.
Announcing the possibility in the press release, VMware remained tentative, saying “there can be no assurance that any such agreement regarding the potential transaction will occur, and VMware does not intend to communicate further on this matter unless and until a definitive agreement is reached.”
VMware has recently bought Bitnami and Heptio recently. Dell owns the majority of both VMware and Pivotal, and VMware owns an interest in Pivotal and sells its services to its own customers.
Pivotal went public in April 2018. It was a spin-off from EMC (now DellEMC) and VMware, with the sole purpose of focusing on Cloud Foundry. It seems as many of the Fortune 500 companies now work with Pivotal to support their Cloud Founder efforts.