Related: Pivotal Software Q2 loss narrows on top-line growth
The combination, touted as a win-win deal for VMWare and Pivotal, is expected to be beneficial to their mutual clients also, including high-value customers like Raytheon Company (RTN).
“It’s my pleasure to announce Ray O’Farrell as the leader of VMware’s new Modern Applications Platform business unit—uniting the Pivotal and VMware Cloud Native Applications teams. And as Pivotal is now part of VMware, I want to thank the Pivotal leadership team for building a great company. Together, we’re poised to be the leading enabler of Kubernetes with a deep understanding of both operators and developers,” said VMWare CEO Pat Gelsinger.
In the third quarter, VMWare’s adjusted earnings dropped 4% annually to $1.49 per share, reflecting a buyout-related investment. Revenues, meanwhile, climbed 12% annually to $2.46 billion.
VMWare shares traded higher during Monday’s early trading hours. The stock has declined 9% in the past six months, after climbing to a record high mid-year and crossing the $200-mark for the brief period. Meanwhile, Pivotal closed at $15 after trading in the stock was suspended before the opening bell.