VMware In Talks To Buy Pivotal Software For $15/shr In Cash

(RTTNews) - Shares of Pivotal Software Inc. (PVTL) increased over 69 percent in after-hours trading on Wednesday after VMware Inc said that it is proceeding with an agreement to acquire all outstanding shares of Pivotal's class A stock at $15 per share in cash.

VMware said in a regulatory filing that it has requested that Dell Technologies exchange all of the outstanding shares of Class B common stock of Pivotal other than shares of Class B common stock of Pivotal held by VMware for shares of Class A Common Stock of VMware.

Dell and VMware are now discussing a to be agreed upon exchange ratio, based upon the unaffected market price of each of the Pivotal Class A common stock and the VMware common stock.

Separately, Pivotal Software confirms that it is in discussions with VMware regarding a potential business combination, and they are proceeding to negotiate definitive agreements with regards to a transaction.

PVTL closed Wednesday's regular trading at $8.30, down $0.16 or 1.89 percent. But, in the after-hours trade, the stock gained $5.77 or 69.52 percent.