VMware Going IPO

It looks like parent company EMC will sell off approximately 10% of VMware via an initial public offering (IPO) of newly issued VMware stock. EMC has no intention of spinning out or otherwise divesting its ownership interest in the virtualization giant. Joe Tucci, EMC Chairman, President and Chief Executive Officer, said, "VMware is one of the fastest-growing businesses in the history of the software industry. W

It looks like parent company EMC will sell off approximately 10% of VMware via an initial public offering (IPO) of newly issued VMware stock.

EMC has no intention of spinning out or otherwise divesting its ownership interest in the virtualization giant.

Joe Tucci, EMC Chairman, President and Chief Executive Officer, said,

"VMware is one of the fastest-growing businesses in the history of the

software industry. We expect the IPO to unlock more of VMware's value for EMC shareholders while also strengthening its ability to retain and attract the software industry's top talent." Diane Greene, VMware President and EMC Executive Vice President, said,

"VMware has secured its leadership position in the virtualization market through industry-leading and award-winning products. Our focus on people, innovation, and the customer adoption of our products has enabled us to continue to grow our company and deliver significant value. We expect that the IPO will help us execute on our vision of an industry standard virtual infrastructure. It should enable us to accelerate our ability to find and attract great people, continue to invest in great product development, and grow an even stronger partner ecosystem."

EMC believes the IPO, which is expected to occur this summer, will

provide both EMC and VMware with a number of significant advantages

including:

  • Improved visibility into VMware's performance and growth relative to the market.

  • Strengthened VMware employee retention and recruitment through a broad-based equity award pool.

  • Reinforced commitment to VMware's open platform strategy. Tucci continued, "We are dedicated to VMware's open platform strategy

    and partnerships with industry-leading technology companies both large and small. VMware's open platform strategy is critical to the growth of virtual infrastructure as an industry standard layer that benefits all customers and partners."

    The IPO is not expected to have a material impact on EMC's 2007

    business outlook. VMware will be a publicly traded entity upon completion of the transaction. Tucci and Greene are expected to be named to VMware's Board of Directors.

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