President of the New York Stock Exchange Thomas Farley and executives from Pivotal Software ring the opening bell at the New York Stock Exchange April 20, 2018.
Brendan McDermid | Reuters
Pivotal shares rose more than 64% in extended trading on Wednesday after VMware said it’s proceeding with an agreement to acquire all outstanding shares of Pivotal’s class A stock at $15 per share in cash, an 80% premium on Pivotal’s $8.30 closing price.
VMware also said in a regulatory filing that it has requested that Dell exchange all outstanding shares of Pivotal’s class B stock, other than class B Pivotal shares owned by VMware, for Class A VMware stock. Dell controlled almost 81% of VMware’s outstanding common stock and more than 97% of the combined voting power of VMware’s outstanding stock as of May 3.
The transaction could contribute to the further diversification of VMware, which has moved to collaborate with cloud infrastructure providers like Amazon in order to enable existing customers to run their computing workloads in whatever environment they like.
Pivotal went public in April 2018. VMware and DellEMC both contributed assets when Pivotal was established in 2013.
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