|Page (1) of 1 - 03/13/13||email article||print page|
EMC aims to make Pivotal initiative a public companyUS-EMC-PIVOTAL:EMC aims to make Pivotal initiative a public company
(Reuters) - Data storage equipment maker EMC Corp plans to create a new company called Pivotal that would be 69 percent owned by EMC and 31 percent owned by its publicly traded affiliate VMware Inc, according to EMC Chief Executive Joe Tucci.
Tucci also said at an investor meeting that his plan would be to eventually take Pivotal public and to create its own equity so that it could attract some strategic investors.
He also said that EMC will contribute money to the venture, which EMC and software maker VMWare first announced in December, but did not immediately provide financial details.
Tucci suggested that the structure would be similar to that of VMware, a spinoff from EMC that is publicly traded but still 80 percent owned by EMC.
The companies had said in December that they planned in the second quarter to merge their data analytics and cloud application assets into what it called the Pivotal initiative.
Tucci did not immediately discuss a time frame for the move.
The companies said in December that they would combine EMC's data analytics division Greenplum and its Pivotal Labs group with VMware's vFabric, SpringSource and Gemstone units as well VMware's data analytics company Cetas and CloudFoundry, a cloud computing platform as a service.
Analysts had expected that the realignment could eventually result in a spin-out of the new group from EMC, the world's leading maker of corporate data storage equipment.
(Reporting By Nicola Leske and Sinead Carew; Editing by Gerald E. McCormick and Nick Zieminski)
Related Keywords:US , EMC , PIVOTAL