Virtualization software specialist VMware, Inc. expects to raise about $741 million in its upcoming IPO, with Intel (INTC)
investing $218 million [1] and receiving a seat on the company’s board of directors, the company said this morning. With
virtualization [2] 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 [3], 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.”
Rich Miller is the founder and editor-in-chief 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.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2007/07/09/vmware-ipo-to-raise-741m-intel-invests/
URLs in this post:
[1] investing $218 million: http://arstechnica.com/news.ars/post/20070709-intel-buys-into-vmware.html
[2] virtualization: http://www.datacenterknowledge.com/archives/virtualization-index.html
[3] VMware: http://www.vmware.com
[4] Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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