VMware IPO to Raise $741M, Intel Invests

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Virtualization software specialist VMware, Inc. expects to raise about $741 million in its upcoming IPO, with Intel (INTC) investing $218 million and receiving a seat on the company’s board of directors, the company said this morning. With virtualization growing in importance as a data center management and cost-cutting tool, VMware’s pending IPO is being closely watched in the data center industry.

VMware, which is owned by storage software giant EMC Corp. (EMC), said in a regulatory filing that it expects to sell up to 37.95 million shares to the public for an estimated price of between $23 and $25 per share. VMware said its Class A common stock has been approved for listing on New York Stock Exchange under the symbol VMW.

Intel Capital will pay $23 a share for 9.5 million Class A common shares in VMware, giving it 2.5 percent of all outstanding common stock. Intel said the investment “is intended to foster strengthened inter-company collaboration towards accelerating VMware virtualization product adoption on Intel architecture.”

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.