Monday, July 9, 2007

Intel Injects $218.5M Into VMware Ahead Of IPO

Palo Alto-based VMware and Santa Clara-based Intel said this morning that Intel Capital will invest $218.5M in VMware's Class A common stock, making Intel the owner of approximately 2.5 percent of VMware, which is in the process of undergoing an IPO. VMware is a subsidiary of EMC Corporation. Intel said that as part of the investment, it expects to appoint an Intel executive to VMware's board of directors. According to the firms, the investment is intended to foster inter-company collaboration, including joint development, marketing, and other industry initiatives.