VMware buys Nicira startup for $ 1.26 billion

For a long time it was no longer heard of large purchases in the IT world, and today it became known that VMware acquired Nicira startup for a fairly large amount of $ 1.26 billion. The startup itself became famous in February this year, after five years of work (it was founded back in 2007). According to representatives of VMware, the acquired company will help the buyer to take a more stable position in the field of enterprise software, although this company already has good positions in this sector.

The purchase is regarded by VMware management as a reserve for the near future, when it will be possible to increase the presence in the market of software for server virtualization. In addition, the product of the acquired company will help increase the efficiency of computer networks, as well as save on hardware, which is an important problem for corporations.

Nicira's software allows you to manage computer networks centrally; approximately the same management method is used in the case of Cisco. However, VMware plans to release hardware-independent virtualization systems for network equipment.

As for the terms of the contract, the buyer pays a little more than a billion dollars in cash, one-time. In addition, $ 201 million will be invested in Nicira, in the assets of this company. According to experts, this deal is capable of changing the structure of the market for network equipment and software for virtualization. It is worth noting that previously such large companies as Rackspace, EBay and Fidelity have already acted as customers of Nicira.

Via techcrunch