VMware slides after agreeing to buy Carbon Black and Pivotal in a double merger valued at $4.8 billion
- Software company VMware agreed to acquire Carbon Black and Pivotal for a total value of $4.8 billion.
- Shares of VMware slipped 4% in aftermarket trading, while Pivotal gained as much as 8% and Carbon Black saw shares halted.
- Read more on Markets Insider.
The deal is expected to close by the end of January 2020, CNBC reported.The double merger combines two of VMware's largest acquisitions to date. Shares of Pivotal gained as much as 8% in aftermarket trading on the news, while shares of VMware fell more than 4%. Carbon Black shares were halted after the announcement.
The acquisitions will strengthen VMware's position in the security market and hybrid-cloud infrastructure operations, CNBC reported.
VMware will pay $26 dollars per share for Carbon Black, a 14% premium from where the shares were trading at Thursday's close. Pivotal is being bought for a blended price per share of $11.71.