VMware Announces $300 Mln Stock Purchase Agreement With Dell

(RTTNews) - VMware Inc. (VMW) said that it has entered into a Stock Purchase Agreement with Dell Technologies Inc., under which VMware agreed to purchase $300 million worth of VMware Class A Common Stock currently held by a Dell subsidiary.

This $300 million Stock Purchase Agreement is part of the company's previously disclosed $1.2 billion buyback authorization through the end of fiscal 2018.

Separately, Dell Technologies plans to use the $300 million proceeds to repurchase the Dell tracking stock for VMware, DVMT.

The $300 million stock purchase is expected to be completed by the end of VMware's fiscal Q2 2018 ending on August 4, 2017. The impact of the $300 million Stock Purchase Agreement on VMware's previously provided guidance for fiscal Q1 2018 and full year fiscal 2018 diluted share count is not expected to be material.