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M&A News: Pivotal Software (PVTL) Stock Skyrockets on VMware Deal Talk

A deal may value PVTL stock at $15 per share

M&A news for Thursday includes VMware (NYSE:VMW) announcing that it is looking at a deal to acquire Pivotal Software (NYSE:PVTL).

M&A News: Pivotal Software (PVTL) Stock Skyrockets on VMware Deal Talk
Source: Sundry Photography /

The M&A news surrounding the two companies has PVTL stock taking off. However, it looks like the talks are still in the early stages. The information from VMware doesn’t provide much in the way of details, but Dell Technologies (NYSE:DELL), which controls both companies, has a little more to say.

Currently, Dell Technologies wants a deal that values shares of PVTL stock at $15 each. This represents a roughly 81% premium over the stock’s closing price on Wednesday. It would also value the company at around $4 billion. The two are also working on an exchange rate for Class B shares of PVTL stock for Class A shares of VMW stock, Reuters notes.

Here’s what VMware has to say about the M&A news.

“VMware regularly evaluates potential partnerships and acquisitions that would accelerate our strategy. Pivotal is a long-term strategic partner and we’re already successfully collaborating to help enterprises in their application development and infrastructure transformation.”

VMware goes on to note that this M&A news doesn’t mean that there is going to be a deal. Instead, it says that its Board of Directors will continue to work with the best interest of VMW shareholders in mind. It also won’t be providing anymore updates unless it reaches an agreement with Pivotal Software.

PVTL stock was up 68%, VMW stock was down 6% and DELL stock was down 4% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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