VMware company bought startup Nicira for 1.26 billion dollars

It has long been heard of major purchases in the IT world, and today it became known that VMware acquired startup Nicira for a fairly large amount - 1.26 billion US dollars. The startup itself became famous in February of this year, after five years of work (it was founded back in 2007). According to representatives of VMware, the purchased company will help the buyer to take a more stable position in the field of corporate software, although this company already has quite good positions in this sector.

The purchase is regarded by the management of VMware as a groundwork for the near future, when it will be possible to increase its presence on the server virtualization software market. In addition, the product of the purchased company will help enhance the efficiency of computer networks, as well as save on hardware, which is an important issue for corporations.
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Software from Nicira allows you to manage computer networks centrally; about the same control method is used in the case of Cisco. However, VMware plans to release hardware-independent network hardware virtualization systems.

As for the terms of the contract, the buyer lays out a little more than a billion dollars in cash, one-time. In addition, 201 million dollars will be invested in Nicira, in the assets of this company. This transaction, according to experts, is capable of changing the structure of the network equipment and virtualization software market. It is worth noting that Nicira has previously been such large companies as Rackspace, EBay and Fidelity.

Via techcrunch