Palo Alto-Based VMWare to Acquire SpringSource for $420M

Palo Alto, Calif. -- VMWare, a Palo Alto-based developer of virtualization software for desktop computers and datacenters, said that it will acquire San Mateo-based SpringSource, a developer of software for building and managing Java software applications, in a deal worth $420 million. The deal, expected to close later this quarter, includes about $362 million in cash and equity, plus the assumption of about $58 million of unvested stock and options. VMware and SpringSource plan to further develop integrated "Platform as a Service (PaaS)" products that can be hosted at customer datacenters or at cloud service providers. SpringSource launched its initial products five years ago.
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