VMware’s $2.7 Billion Acquisition of Pivotal Software

J.P. Morgan Securities LLC served as financial advisor and Wilson Sonsini Goodrich & Rosati served as legal counsel to VMware. Lazard served as financial advisor and Gibson, Dunn & Crutcher LLP served as legal counsel to the Special Committee of the VMware Board of Directors. Davis Polk & Wardwell LLP served as legal counsel to Pivotal. Morgan Stanley & Co. LLC served as financial advisor and Latham & Watkins, LLP served as legal counsel to the Special Committee of the Pivotal Board of Directors. Simpson Thacher is representing Dell Technologies Inc. in the transaction.

VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, executed the acquisition of Pivotal Software, Inc. (NYSE: PVTL), a leading cloud-native platform provider.

According to the agreement, the blended price per share is US$11.71, comprised of US$15 per share in cash to Class A stockholders, and the exchange of shares of VMware’s Class B common stock for shares of Pivotal Class B common stock held by Dell Technologies, at an exchange ratio of 0.0550 shares of VMware Class B stock for each share of Pivotal Class B stock. In total, the merger consideration represents an enterprise value for Pivotal of US$2.7 billion.

VMware and Pivotal share a long history of collaboration and joint innovation. The combination of Pivotal’s developer experience and assets with VMware’s IT expertise and infrastructure will help deliver a comprehensive portfolio of products, tools and services necessary to build, run and manage modern applications on Kubernetes infrastructure with velocity and efficiency.

Dell Technologies is a global information technology company that provides customers with innovative technology and services.

The Davis Polk corporate team includes partners Alan F. Denenberg (Picture) and Sarah K. Solum and associates Bryan M. Quinn, Katherine Schloss Ackerman and Jonathan Bye. Partner Rachel D. Kleinberg is providing tax advice. The intellectual property and technology team includes partner Pritesh P. Shah and associate Daniel F. Forester. Counsel Gregory D. Hughes and associate Charlotte R. Fabiani are providing executive compensation advice.

Latham & Watkins LLP represents the Special Committee of the Pivotal Board of Directors in the transaction with a corporate team led by Silicon Valley partners Tad Freese and Mark Bekheit, with associates Tessa Bernhardt and Nimrah Khan. Advice was also provided on technology transactions matters by Silicon Valley partner Anthony Klein, with associate Gil Halpern; on employee benefits matters by Silicon Valley partner James Metz, with associates James Robinson and Mi Zhou; on tax matters by San Francisco partner Grace Lee, with associate Jessica Chen; on antitrust matters by San Diego partner Hanno Kaiser and San Francisco partner Joshua Holian; and on privacy matters by Washington, D.C. counsel Scott Jones, with associate James Smith.

The Simpson Thacher team includes William R. Dougherty, Richard Capelouto, Atif Azher, Naveed Anwar, Mark Myott, Vinay Mysoor and Anna LeGrett (M&A); Hui Lin, Jennifer L. Nadborny, Kelli Schultz and Jonathan Kachiu (Capital Markets); Tristan Brown, Erin Murphy, Andrew M. Kofsky, Annie Kim and Erik T. Ward (Executive Compensation and Employee Benefits); Lori E. Lesser, Marcela Robledo and Corina McIntyre (Intellectual Property); and Katharine P. Moir and Tyler S. Robbins (Tax).

Involved fees earner: Jonathan Bye – Davis Polk & Wardwell; Alan Denenberg – Davis Polk & Wardwell; Charlotte Fabiani – Davis Polk & Wardwell; Daniel Forester – Davis Polk & Wardwell; Gregory Hughes – Davis Polk & Wardwell; Rachel Kleinberg – Davis Polk & Wardwell; Bryan Quinn – Davis Polk & Wardwell; Katherine Schloss Ackerman – Davis Polk & Wardwell; Pritesh P. Shah – Davis Polk & Wardwell; Sarah K. Solum – Davis Polk & Wardwell; Mark Bekheit – Latham & Watkins; Tessa Bernhardt – Latham & Watkins; Jessica Chen – Latham & Watkins; Tad Freese – Latham & Watkins; Gil Halpern – Latham & Watkins; Joshua Holian – Latham & Watkins; Scott Jones – Latham & Watkins; Hanno Kaiser – Latham & Watkins; Nimrah Khan – Latham & Watkins; Anthony Klein – Latham & Watkins; Grace Lee – Latham & Watkins; James Metz – Latham & Watkins; James Robinson – Latham & Watkins; James Smith – Latham & Watkins; Mi Zhou – Latham & Watkins; Naveed Anwar – Simpson Thacher & Bartlett; Atif Azher – Simpson Thacher & Bartlett; Tristan Brown – Simpson Thacher & Bartlett; Richard Capelouto – Simpson Thacher & Bartlett; William Dougherty – Simpson Thacher & Bartlett; Jonathan Kachiu – Simpson Thacher & Bartlett; Annie Kim – Simpson Thacher & Bartlett; Andrew Kofsky – Simpson Thacher & Bartlett; Anna LeGrett – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Hui Lin – Simpson Thacher & Bartlett; Corina McIntyre – Simpson Thacher & Bartlett; Katharine Moir – Simpson Thacher & Bartlett; Erin Murphy – Simpson Thacher & Bartlett; Mark Myott – Simpson Thacher & Bartlett; Vinay Mysoor – Simpson Thacher & Bartlett; Jennifer Nadborny – Simpson Thacher & Bartlett; Tyler Robbins – Simpson Thacher & Bartlett; Marcela Robledo – Simpson Thacher & Bartlett; Kelli Schultz – Simpson Thacher & Bartlett; Erik Ward – Simpson Thacher & Bartlett;

Law Firms: Davis Polk & Wardwell; Latham & Watkins; Simpson Thacher & Bartlett;

Clients: Dell Technologies; Pivotal Software; Pivotal Software – Board of Directors;

Author: Ambrogio Visconti