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VMware to buy Avi
Posted on Friday, 14 June 2019 13:36
VMware is acquiring US-based Avi Networks, a provider of cloud-based software services, for an undisclosed sum.
Headquartered in California, the target operates across financial services, media and technology companies.
Its services enable users to easily apply load balancing, web application and service mesh to any platform from one interface.
Avi’s products include Avi iWAF, which provides high-performance web security and protects apps from cyber-attacks.
Tom Gillis, senior vice president of VMware, said: “This acquisition will further advance our virtual cloud network vision, where a software-defined distributed network architecture spans all infrastructure and ties all pieces together with the automation and programmability found in the public cloud.”
He added the deal would enable organisations to respond to cyber-threats, create new business models and provide services to all apps and data, regardless of the location.
Amit Pandey, chief of executive of Avi, noted: “Upon close, customers will be able to benefit from a full set of software-defined L2-7 application networking and security services, on-demand elasticity, real time insights, simplified troubleshooting, and developer self-service.”
The deal is expected to complete in VMware’s second quarter of fiscal 2020.
VMware is no stranger to the acquisition trail; the company agreed to purchase US-based online cloud-based software-as-a-service provider Heptio for an undisclosed sum in November last year.
The California-based buyer delivers cloud computing and virtualisation software services for the banking, healthcare and retail industries, among others.
For the quarter ended 3rd May 2019, VMware generated revenue of USD 2.27 billion, up from USD 2.01 billion in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 4,184 deals targeting data processing, hosting and related services providers announced worldwide since the beginning of 2019.
The largest of these involved Softbank Group, through its subsidiary West Raptor Holdings, selling its 2.8 per cent stake in Cayman Islands-based Alibaba Group Holding for JPY 1,200 billion (USD 11.09 billion).
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