emc to sell $218.5m stake in vmware to intel - energy storage system price
The price of Hopkinton is $218.
Shares of VMware Inc. 500 million
The move comes as EMC prepares to raise up to $0. 949 billion by selling about 10% of VMware to the public.
VMware said yesterday that it plans to sell 33 million ordinary shares to the public. if the public offering is oversubscribed, it can choose to sell another 4,950,000 shares.
The stocks are priced between $23 and $25.
No release date has yet been disclosed, but the company is expected to do so sometime this summer.
VMware has manufactured "virtualization" software, greatly increasing the number of tasks that can be performed on one computer.
Companies around the world are accepting virtualization because it allows them to buy fewer computers and reduce energy costs.
EMC is a leader in high-tech
Purchased VMware in 2004 for $0. 625 billion and quickly became one of EMC's fastest terminal data storage systems --
Growing Enterprises.
VMware's revenue grew 83% last year to $0. 709 billion.
In February, EMC said it would sell about 10% of VMware shares to the public as a profitable way for the company to grow rapidly.
According to EMC's asking price for these stocks, VMware is now worth 15 times the price EMC pays for it.
The deal with Intel will give the chip maker a 2.
Have a 5% interest in VMware and have a place on the company's board of directors.
While virtualization can reduce demand for Intel's popular microprocessor, the company has embraced the technology and redesigned processors to enable them to run virtualization software more efficiently.
"Virtualization is another use of the horsepower Intel can provide," said Intel spokesman Tom Beermann . ".
Tom Bittman, vice president, Stanford research, Connecticut.
Praised Intel's investment in VMware, but hoped that EMC would reduce its investment in fast-Growing Company
"Over time, I want to see EMC become a minority owner," said Bitman . " He is concerned that EMC has become addicted to VMware's strong revenue.
VMware officials declined to comment on a statutory "silent period" before the company's stock issue ".
Meanwhile, EMC will today disclose alliances with network hardware manufacturers to provide technology for secure storage and information sharing between government agencies.
Three other companies, including liquid machines.
Waltham will provide additional technology for the system, called the secure information sharing architecture.
The system, which has been developed for two years, should help workers find and obtain important information, even if it is in the hands of different government departments.
At the same time, the system is designed to ensure that the information is kept safe and is only shared with workers who are entitled to view the information.
"This is a very difficult task," said Mark Colburn, vice president of business at EMC federal government . ".
Security systems rely on enhancements to existing EMC, Cisco, and Microsoft products to enable government agencies to continue using their current technologies.
Other hardware and software companies will be able to join the alliance to make their products compatible with system standards.