VMware acquires SpringSource for $420 million
12 Aug 2009
US virtualisation solutions leader VMware has agreed to buy Springsource, a tools maker for Java developers, for $420 million, in order to deliver new solutions that enable companies to more efficiently build, run and manage applications within both internal and external resources over the Internet.
Under the deal announced on Monday, VMware will acquire SpringSource, a privately held firm for approximately $362 million in cash and equity plus the assumption of approximately $58 million of stock and options.
SpringSource's shareholders has approved the deal which is expected to close in the third quarter of 2009, subject to customary closing conditions.
VMware president and chief executive officer, Paul Maritz said, ''Today's modern computing environments are moving to an application and data-centric world powered by state of the art virtualised and cloud computing platforms.''
''The combination of SpringSource and VMware capitalises on this shift and places us right at the intersection of the most important forces in the software market today - virtualisation, modern application frameworks and cloud computing,'' he added.
Through the deal, the companies plan to further innovate and develop integrated Platform as a Service (PaaS) solutions that can be hosted at customer data centers or at cloud service providers, allowing customers to rapidly build new enterprise and web applications in a cost effective manner.
Springsource chief executive officer, Rod Johnson stated that by combining VMware and SpringSource forces, they will be able to deliver a set of truly remarkable solutions that dramatically simplify enterprise IT.''
San Mateo, California-based SpringSource provides the platform for today's enterprise Java applications and tomorrow's virtualised and cloud deployment architectures.
