Thursday, February 8, 2007

EMC To IPO VMware

EMC announced Wednesday night that it plans to sell 10% of the firm's fast growing Palo Alto-based VMware subsidiary in an initial public offering. EMC said that it will retain ownership of the remaining shares of VMware, and does not intend to spin out or divest its ownership interest in the firm. VMware provides software used for system virtualization, and has seen rapid growth as enterprise IT managers have adopted the firm's virtualization products. EMC said in a statement that it expects the IPO to unlock more of VMware's value for EMC shareholders, and that it expects the IPO to occur over the summer.