VMware announced today that they are purchasing Carbon Black, a listed security company focused on securing modern cloud-native workloads. The cost of the acquisition is around $ 2.1 billion.
In addition, VMware also confirmed the acquisition of Pivotal, which will have a value of around $ 2.7 billion. VMware sales for the last quarter were $ 2.44 billion. It's a big day for VMware.
"Based on a new solid quarter, we are pleased to announce our intention to buy Pivotal and Carbon Black," VMware CEO Pat Gelsinger said in today's announcement. These acquisitions address two key VMware, Inc. priorities for all businesses today ̵
These are actually two very different companies, but both Carbon Black and central focus on modern workloads. Pivotal focuses on building modern applications, thanks to its Cloud Foundry legacy and recently added support for Kubernetes, while Carbon Black provides the security features needed to secure modern applications and infrastructure.
The two moves follow the company's acquisition of Bitnami earlier this year and completed this triquetra with acquisitions that all aim to bring VMware's technology into a future where VMs are just part of the equation.
Carbon Black was founded in 2002 and went public in early 2018. At the time of the IPO, its valuation was approximately $ 1.25 billion. The stock traded as low as $ 13 earlier this year, but it has since risen above $ 21. VMware will pay $ 26 per share in cash for the company and expects the deal to be completed by the end of January 2020.
"Today marks an exciting milestone for Carbon Black, VMware and the entire cybersecurity industry," said Patrick Morley, CEO CEO, Carbon Black, in the announcement. "We now have the ability to seamlessly integrate Carbon Black's cloud-native endpoint protection platform into all VMware control points. This type of bold move is exactly what the IT and security industries have been looking for for a very long time. We look forward to working with the VMware team for to continue to deliver a modern security cloud platform to customers worldwide, and in addition, we are pleased that today's transaction brings immediate and significant value to Carbon Black shareholders. "
The acquisition of Pivotal, which was initially incubated with VMware and EMC Corporation , brings a new developer platform to VMware that makes it easier for developers to write, test, and deploy their applications – a smart move that helps VMware complete its story, which has typically focused on providing infrastructure versus actual development tools .
"Kubernetes stands as the de facto standard for multi-cloud modern apps. We are excited to combine Pivotal's development platform, tools and services with VMware's infrastructure capabilities to deliver a comprehensive Kubernetes portfolio to build, operate and manage modern applications, ”Gelsinger said. "More importantly, adding Pivotal to our platform accelerates our broader Any Cloud, Any App, Any Device vision and strengthens our leadership position in modern multi-cloud IT infrastructure."
You can read more about the Pivotal acquisition here.