Intel To Take a $218.5 Million Equity Stake in VMware
Intel will take a $218.5 million equity stake in VMware, a subsidiary of data storage firm EMC. The deal will give Santa Clara, Calif.-based Intel an approximately 2.5% ownership stake in VMware, which EMC plans to spin off in an initial public offering.
Intel’s interest in VMware stems from the fact that the majority of computer servers running VMware’s so-called virtualization software run on Intel microprocessors. This gives both companies an incentive to work together to make their products compatible. Separately, on Monday, Palo Alto, Calif.-based VMware filed plans with the Securities and Exchange Commission to sell 33 million shares in its IPO between $23 and $25 each. The company estimates that the net proceeds from the sale will total $741.4 million.
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