VMware, Inc. has announced that they intend to acquire network virtualisation software company Nicira, for $1.05 billion (approximately £677 million) in cash in addition to $210 million USD unvested equity awards. VMware and Nicira expect the deal to finalise in the “second half of 2012” as a result of requiring regulatory approval in order for the acquisition to take place. VMware has announced that the acquisition has been approved by the Board of Directors of both VMware and Nicira, and has further been approved by Nicira stockholders. VMware wishes to strengthen its virtualisation services especially in the network virtualisation area, stating Nicira “is at the forefront of software-defined networking, which enables the dynamic creation of virtual network infrastructure and services that are completely decoupled and independent from the physical network hardware.”
Nicira is a 5 year old company that develops network virtualisation solutions for computers working from within the same network. Nicira’s “Network Virtualisation Platform” is already deployed by some major companies including eBay and AT&T.
As well as VMware’s corporate virtualisation solutions, eUKhost primarily making use of VMware technology for our VMware Cloud Hosting, VMware develops virtualisation software solutions for home and office users too, including VMware Workstation for Windows and VMware Fusion for Macs to be able to install different operating systems in a virtualised container.