VMware Spends $4.8 Billion on Carbon Black and Pivotal
VMware acquires security firm Carbon Black for $2.1 billion and cloud platform Pivotal for $2.7 billion to modernize its enterprise offerings.
VMware announces two major acquisitions totaling $4.8 billion to strengthen its position in the modern cloud market. The company purchases cybersecurity firm Carbon Black for $2.1 billion and cloud platform Pivotal for $2.7 billion. These deals represent a massive shift for VMware as it looks beyond traditional virtual machines.
Both acquired companies focus on modern workloads, but they serve different purposes within the tech stack. Pivotal provides tools for building enterprise-grade applications using Kubernetes and its Cloud Foundry heritage, while Carbon Black delivers cloud-native endpoint security to protect these modern infrastructures. Together, they significantly expand VMware's software-as-a-service capabilities.
VMware pays $26 per share in cash for Carbon Black and expects this deal to close by the end of January 2020. These purchases follow the earlier acquisition of Bitnami, completing a strategic trio of moves designed to accelerate VMware's digital transformation and provide comprehensive solutions for next-generation enterprise software.