Cisco to invest $150M in virtualization company, VMware

July 30, 2007 | Matt Marshall

Cisco Systems has agreed to invest $150 million in VMware, a leader in the hot virtualization trend, before the Hopkinton, Mass company goes public.

VMware’s virtualization software lets companies run multiple operating systems and applications on a single machine, thus saving costs on hardware.

In exchange for its investment, Cisco will get a 1.6 percent stake in VMware.

VMware’s parent, EMC, the data-storage equipment maker based in Hopkinton, Mass., plans to spin off 10 percent of the unit in an IPO. Earlier this month, Intel also agreed to invest $218.5 million in VMware.

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Tags: deal

About the Author, Matt Marshall

Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.