Intel Invests $218 Million As VMware Prepares For IPO

Intel Capital and VMware have announced that the processor manufacturer will invest $218.5 million in the software virtualization company. With its new investment in VMware, Intel extends its longtime relationship with the EMC unit. In an announcement, Intel and VMware said: "VMware's base virtualization platform virtualizes the Intel architecture. Intel microprocessors comprise the majority of the systems on which VMware's virtualization products are deployed." As well, the lead underwriters, Citigroup Global Markets, JP Morgan Securities, and Lehman Brothers, are preparing to launch the much-anticipated IPO for EMC's VMware subsidiary. At the completion of the IPO, Intel expects to own about 2.5% of VMware's total outstanding common stock, and Intel expects to appoint an executive to VMware's board of directors.

News source: InformationWeek

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