Comprehensive M&A data with integrated detailed company information
VMware to secure a deal with Carbon Black
Posted on Friday, 23 August 2019 10:02
VMware has agreed to snap up US-based Carbon Black for an enterprise value of USD 2.10 billion in cash.
The buyer is offering USD 26.00 per share, representing a premium of 14.3 per cent to the target’s close of USD 22.75 on 21st August, the last trading day prior to the deal being announced.
VMware will fund the acquisition, which is due to complete during the buyer’s fiscal year 2020, using cash on its balance sheet and through a short-term borrowing capacity.
However, the transaction remains subject to closing conditions, including the expiration of waiting periods under US antitrust laws.
The deal follows VMware announcing on the same day that it was also purchasing US-based cloud-native platform provider Pivotal Software for an enterprise value of USD 2.20 billion.
Headquartered in Massachusetts, Carbon Black is a cybersecurity company which develops software to detect and help businesses combat cyberattacks.
Its clients span the finance, government, healthcare and manufacturing industries and the business provides services such as ransomware protection, incident response, locking down of critical systems and next-generation anti-virus technology.
The group serves over 5,600 customers and 500 partners worldwide, as well as generating revenue of USD 119.41 million for the six months ended 30th June 2019, up 16.7 per cent from USD 99.43 million in the corresponding period of 2018.
Patrick Morley, chief executive of Carbon Black, said: “We now have the opportunity to seamlessly integrate Carbon Black’s cloud-native endpoint protection platform into all of VMware’s control points.”
Shares in the target closed up at USD 24.50 yesterday, giving the company a market capitalisation of USD 1.61 billion.
Pat Gelsinger, chief executive of the buyer, observed: “With this acquisition, VMware will also take a significant leadership position in security for the new age of modern applications delivered from any cloud to any device.”
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 6,421 deals targeting data processing, hosting and related services providers signed off so far in 2019.
Softbank selling its 2.8 per cent in Cayman Islands-based Alibaba Group Holding for JPY 1,200 billion (USD 11.09 billion), is the largest of these to date.
© Zephus Ltd