VMware is buying cybersecurity company Carbon Black and digital transformation company Pivotal in two deals worth US$2.1 billion and US$2.7 billion respectively.

Carbon Black is a next-generation security cloud provider with more than 5,600 customers and 500 partners globally.

The company’s cloud-native security platform leverages big data and behavioural analytics to provide comprehensive endpoint protection against cyberattacks.  

Pat Gelsinger, CEO, VMware said, “The security industry is broken and ineffective with too many fragmented solutions and no cohesive platform architecture. By bringing Carbon Black into the VMware family, we are now taking a huge step forward in security and delivering an enterprise-grade platform to administer and protect workloads, applications and networks.  

“With this acquisition, VMware will also take a significant leadership position in security for the new age of modern applications delivered from any cloud to any device.”

Patrick Morley, CEO, Carbon Black said, “We now have the opportunity to seamlessly integrate Carbon Black’s cloud-native endpoint protection platform into all of VMware’s control points. This type of bold move is exactly what the IT and security industries have been looking to see for a very long time. 

“We look forward to working with the VMware team to continue delivering a modern security cloud platform to customers around the world. Additionally, we’re pleased that today’s transaction provides Carbon Black’s shareholders with immediate and substantial value.”

Pivotal deal

According to VMware for the last six years, Pivotal has been at the leading-edge of modern software development, helping organisations transform how they build and run their most important applications.

The company offers a set of assets including a leading developer-centric platform, tools and services that accelerate modern app development.

VMware and Pivotal share a history of collaboration and joint innovation, through the co-development and launch of VMware Pivotal Container Service (PKS) in February of 2018. 

VMware has increased its Kubernetes-related investments over the past year with the acquisition of Heptio and the Kubernetes founders.

The combination of Pivotal’s developer experience and assets with VMware’s IT expertise and infrastructure will help deliver a comprehensive portfolio of products, tools and services necessary to build, run and manage modern applications on Kubernetes infrastructure with velocity and efficiency, the company said.

Gelsinger said, “Adding Pivotal to our platform, accelerates our broader Any Cloud, Any App, Any Device vision and reinforces our leadership position in modern multi-cloud IT infrastructure.”

Rob Mee, CEO at Pivotal said, “VMware has a proven track record of helping organisations run and manage consistent infrastructure in support of mission critical applications, and our two companies have already built a strong foundation on our successful VMware Pivotal Container Service collaboration. 

“We look forward to continuing our work with VMware to provide even more value to customers building modern applications.”

Karen Dykstra, chairperson of the special committee of VMware’s board of directors said, “The VMware Board of Directors is committed to creating value for all stockholders.

“After a thorough and independent evaluation with its advisors, and working closely with the VMware management team, the special committee recommended the Board approve this transaction with Pivotal given its strong strategic and long-term value to the company and its customers.” 

The deals are expected to close at the end of January next year. 

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