Cisco to buy $150 mln of VMware shares

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VMware Inc., a unit of data storage company EMC Corp. said Cisco Systems agreed to buy $150 million worth of VMware Class A common shares. Those that have been following the VMware IPO will recall that Intel just recently took a $218.5 million equity stake in VMware on July 9th of this year.

After the investment, Cisco will own about 1.6 percent of VMware’s total outstanding common stock, the companies said in a statement. VMware, which plans to go public soon, also said it agreed to consider the appointment of a Cisco executive to VMware’s board of directors at a future date.

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