VMware confirmed today that it is in talks to acquire software development platform Pivotal Software, the service best known for commercializing the open source Cloud Foundry platform. The proposed transaction would cause VMware to acquire all outstanding Pivotal A shares for $ 15 per share, a significant mark over Pivotal's current share price (which surprisingly shot up just after the announcement).
Pivotal shares have struggled since the company's IPO in April 2018. The company was originally spun off by EMC Corporation (now DellEMC) and VMware in 2012 to focus on Cloud Foundry, an open source software development platform currently in use by the majority of Fortune 500 companies. Many of these businesses partner with Pivotal to support their Cloud Foundry work. Dell continues to own the majority of VMware and Pivotal, and VMware also owns an interest in Pivotal already and sells Pivotal services to its customers. It's a bit of a chance for a transaction.
Pivotal Cloud Foundry was always the company's main product, but it also offered several consulting services on top of that. Despite improving execution since disclosure, Pivotal still lost $ 31
An acquisition of VMware would give Pivotal's journey full circle, although this is certainly not the journey the Pivotal team expected. VMware is a Cloud Foundry Foundation platinum member, along with Pivotal, DellEMC, IBM, SAP and Suse, so I would not expect any major changes in VMware's support for the overall open source ecosystem behind Pivotal's core platform. [19659002DetgjenståråseomoppkjøpetvirkeligvilskjeIenpressemeldingerkjenteVMwarediskusjonenmellomdetoselskapenemenbemerketat"detkanikkeværenoengarantiforatenslikavtaleangåendedenpotensielletransaksjonenvilskjeogVMwareharikketilhensiktåkommuniserevidereomdennesakenmedmindreoginntilenendeligavtaleernådd"DeterdenslagssetningeradvokaterlikeråskriveJegvilleimidlertidganskeoverrasketomdenneavtalenikkeskjedde
Buying Pivotal would also make sense in the big scheme with VMware's recent acquisitions. Earlier this year, the company bought Bitnami, and last year it bought Heptio, the startup founded by two of the three co-founders of the Kubernetes project, which now forms the basis for many new enterprise cloud deployments and, most recently, Pivotal Cloud foundry.