Wednesday, February 07, 2007

UPDATE 3-EMC to sell stake in software maker VMware via IPO | Reuters.com

"Storage systems company EMC Corp. said on Wednesday it plans to sell a 10 percent stake of its VMware unit in an initial public offering that could become one of the hottest tech IPOs of the year. VMware software management products let large computers run several operating systems at the same time, making it easier and less expensive to manage networks. Known as 'virtualization,' the process has proved one of the hottest trends in business computing this decade. Palo Alto, California-based VMware posted record sales in 2006, EMC said. Full-year revenue rose 83 percent to $709 million as fourth-quarter revenue more than doubled.
'The market has been looking for a killer company in the technology area,' said David Menlow, president of IPOfinancial.com. 'It holds the allure that might ignite an otherwise semi-lethargic market for technology firms.'
EMC said it plans to hold on to the 90 percent stake of VMware it would own after an IPO and has no plans to spin out or otherwise divest that ownership."

No comments: