The deal between Carbon Black and VMware is going to have the latter acquiring the former. This will be through a cash tender offer that values the company at $2.10 billion. That has the per share value of the offer sitting at $26. The offer of $26 per share for CBLK stock represents a 6% premium over the stock’s closing price yesterday.
“The security industry is broken and ineffective with too many fragmented solutions and no cohesive platform architecture,” Pat Gelsinger, CEO of VMware, said in a statement. “By bringing Carbon Black into the VMware family, we are now taking a huge step forward in security and delivering an enterprise-grade platform to administer and protect workloads, applications and networks.”
VMware says that it will be using a mixture of cash on hand and some available through short-term lending in order to acquire Carbon Black. The company also notes that it is expecting the deal to close during the second half of its fiscal 2020 year, which ends on January 31, 2020.
VMware and CArbon Black still need to complete customary closing conditions before the deal can reach completion. This includes getting approval from regulators, as well VMW obtaining a majority stake in CBLK stock.
VMware is getting its financial advice from J.P. Morgan Securities and legal advice from Morrison & Foerster. Morgan Stanley & Co. is providing financial advice to Carbon Black and Goodwin Procter is handling the legal advice.
CBLK stock was up 6% and VMW stock was down 8% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.