November 2, 2021
Raghu Raghuram, CEO of independent cloud computing company VMware Inc, said the company was seeking more deals with cloud computing providers and was looking at “large scale” acquisitions that could accelerate the company’s growth.
Last Monday, VMware completed its spinout from Dell Technologies Inc, which owned 81% of the California technology company, into a fully independent publicly traded company valued at $64 billion.
Founded in 1998, VMware has spearheaded a fundamental shift in the way large companies use data centers with technology that enables data center owners to turn physical computers into “virtual” machines that can be reduced or downsized according to the task at hand.
Many large companies today prefer a combination of their own data centers and one or more cloud providers, which has led many cloud providers to work with VMware to gain better access to their customer base.
In addition, VMware is also pushing to use its shares as a currency to acquire other companies and expand its services with additional technologies.
As a result of the spinout, Dell and other shareholders will receive a special dividend of about $27.40 per share, worth $11.5 billion, which Dell says it will use to repay debt.
For more information, view the original story on Reuters.
