Blog Coverage Vmware Announces Repurchase of Stocks

Upcoming AWS Coverage on ACI Worldwide Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 31, 2017 / Active Wall St. blog coverage looks at the headline from VMware, Inc. (NYSE: VMW) as the leading cloud infrastructure and business Company announced on March 30, 2017, that it has entered into a Stock Purchase Agreement with Dell Technologies, Inc. (NYSE: DVMT) under which VMware will purchase $300 million worth of VMware Class A Common Stock currently held by a Dell’s subsidiary. This $300 million Stock Purchase Agreement is a part of the Company’s previously announced buyback authorization through the end of FY18. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of VMware’s competitors within the Technical & System Software space, ACI Worldwide, Inc. (NASDAQ: ACIW), reported on March 02, 2017, its financial results for the quarter and full year ended December 31, 2016. AWS will be initiating a research report on ACI Worldwide in the coming days.

Today, AWS is promoting its blog coverage on VMW and DVMT; touching on ACIW. Get all of our free blog coverage and more by clicking on the link below: http://www.activewallst.com/register/.

Breaking down the transaction

The purchase price per share is fixed at a 3.5% discount to a volume-weighted average stock price of VMware’s Class A Common stock based on trading on the NYSE during a reference period, which will not be greater than 25% higher or 25% lower than the closing price per share on March 31, 2017. The trading of shares is being carried out with EMC Equity Assets LLC, a Dell’s wholly owned subsidiary, at an initial closing expected to occur on April 05, 2017, which is subject to customary closing conditions.

VMware will deliver the Purchase Amount to EMC in exchange for an initial delivery of shares. A final closing is expected to occur post three business days at the end of the reference period, during VMware’s Q2 FY18, ending August 04, 2017. At the final closing, EMC will deliver VMware a number of shares necessary to fulfill the initial agreement where the final amount will be $300 million divided by the Purchase Price minus the number of Shares delivered at the initial closing.

The December $500 Million Repurchase

Prior to this agreement, VMware initially entered into a Stock Purchase Agreement with Dell Technologies under which, it purchased $500 million worth of VMware Class A Common Stock, held by EMC Corporation, on December 15, 2016. The $500 million stock purchase was expected to be completed during VMware’s Q1 FY18. Dell Technologies separately announced that it plans to use the $500 million proceeds to repurchase the Dell tracking stock for VMware, DVMT, as described in its announcement made on December 15, 2016.

VMware’s Growth Portfolio

VMware has been executing a strategic collaboration with leading technology conglomerates in recent quarters. Just yesterday, on March 29, 2017, the Company announced an expansion of its strategic collaboration with Fujitsu to bring innovative IoT solutions to customers in the automobile industry. VMware, being an industry leader in its fields, enables customers to add to the scale of their digital transformation. Under this agreement, Fujitsu OTA Reprogramming Solution was combined with VMware IoT solutions, enabling automobile manufacturers and partners to drive robust solutions in the future with connected cars and autonomous driving.

Additionally, it announced an extended partnership with Samsung on March 29, 2017, to deliver a next generation unified mobile and desktop experiences to solve mobile workforce challenges. The VMware Horizon and Samsung Desktop Experience will reportedly enable end-users to dock a Samsung Galaxy S8 smartphone and deliver to the device full Windows desktops and applications using a single set of credentials.

Stock Performance

On Thursday, March 30, 2017, the stock closed the trading session at $91.42, slightly down 0.46% from its previous closing price of $91.84. A total volume of 1.26 million shares have exchanged hands. VMware’s stock price advanced 15.04% in the last three months, 23.79% in the past six months, and 74.77% in the previous twelve months. Furthermore, on a year to date basis, the stock gained 16.12%. Shares of the company have a PE ratio of 32.59. The net market capital for the Company was $37.12 billion.

On March 30, 2017, the stock of Dell ended the trading session at $63.99, advancing slightly by 0.14%. A total volume of 2.59 million shares was exchanged. The stock has advanced 15.63% in the last quarter and 33.70% in the last six months. Moreover, the stock has surged 16.41% since the start of the year. The net market capital for the Company stood at $13.77 billion based on Thursday’s closing price.

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