Separately, VMware said in a regulatory filing that it will offer 33 million shares priced between $23 and $25 a share. VMware, which will trade under the ticker “VMW,” will raise net proceeds of $741.4 million.
Intel noted that VMware primarily virtualizes the chip giant’s architecture so it makes sense to make the investment. Intel will have less than 1 percent in voting power.
Bottom line: It’s not going to hurt VMware to have Intel in its corner as virtualization competition heats up. In a statement, the two companies said:
Intel’s investment is intended to foster strengthened inter-company collaboration towards accelerating VMware virtualization product adoption on
Intel architecture and reinforcing the value of virtualization technology for customers. In addition, VMware and Intel have entered into a routine and customary collaboration partnering agreement that expresses their intent to continue to expand their cooperative efforts around joint development, marketing and industry initiatives.
For more virtualization news and opinion see Dan Kusnetzky’s virtualization blog.