VMware in Talks to Buy Pivotal for $15 a Share

By Patrick Thomas

Software maker VMware Inc. (VMW) is in discussions with Pivotal Software Inc.(PVTL) to buy the cloud software-services company for $15 a share, the company said Wednesday in a securities filing.

The deal represents an 80% premium on Pivotal's closing price of $8.30 on Wednesday. Pivotal, a spinoff of EMC Corp. and VMware, is valued at $2.25 billion, according to FactSet.

Dell Technologies Inc., which bought EMC for $67 billion in 2016, owns a roughly 80% stake in VMware. As part of the transaction, VMware has asked Dell to convert its Pivotal class B shares to class A and the two sides are discussing a to-be-agreed-upon exchange ratio, according to the filing.

Pivotal Software shares rose 71% during after-market trading. VMware ticked down 3.6% and Dell was off 1.7%.

Write to Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

August 14, 2019 19:07 ET (23:07 GMT)

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