(Reuters) – VMware Inc. said on Thursday it bought two of the service providers of cloud-based security, and cloud developer services are in separate deals valued at about $5 billion, as it expands offerings to business customers.
VMware bought Key Software, Inc. in a $2.7 billion deal to me. The Dell Technologies, Inc., is the controlling stakeholder of the two companies.
Separately, VMware said it would buy software maker of Carbon Black, Inc., for approximately $2 billion in cash.
VMWare, cloud computing, software as the Hub provides the tools for third-party software developers who are working on cloud-related services. Carbon Black is a cloud based security platform that uses big data and behavioral analysis to protect against cyber attacks.
VMware will pay $26 per share, for the Carbon Black, at a premium of 6% over Thursday’s close.
Companies with traditional products, more money to spend, and the loss of the information, VMware Chief Executive Pat Gelsinger said in an interview. “It’s not broken,” he said, praising the Carbon Black is s platform.
The company expects that, as the Carbon Black, and is the key to it in a meaningful way, to add to its revenue in the first year following the closing of the deals as of January of the following year.
Dell has taken a Crucial public service, last year for $15 per share in cash. On Thursday, it is Crucial to agree, there is a mixed offering price per share of $11.71, or in which Class A shareholders will get $15 per share in cash.
Dell’s interest in the Central will be converted into VMware equity.
The company and its founder, Michael Dell, owns 131.3 million shares in a Crucial Class B stock, which are not included in the 44.2 million shares will be held by VMware, according to a regulatory filing.
Key shares rose 9 percent in extended trading, while those of Carbon Black, which were up almost 6%. VMware’s shares fell by 7%, and Dell shares have shed 3 per cent.
JPMorgan Chase & Co. offers VMWare to the of two deals. Morgan Stanley advised on the Carbon Black, as well as the special committee of its Central board of directors. Lazard Ltd. advised the special committee of VMware’s board of directors.
Report of Lebanon in Front of and Supantha Mukherjee in Bengaluru and Peter Henderson in San Francisco and Greg Roumeliotis in New York; Editing by Bernard Orr and Richard Chang