VMware just announced to have signed a definitive agreement for the acquisition of Nicira, Inc., for approximately $1.05 billion in cash plus $210 million of assumed unvested equity awards.
The parties expect the acquisition to close during the second half of 2012.
Nicira, Inc. is specialised in software-defined networking (SDN) and a leader in network virtualisation for open source initiatives.
VMware is relying on this acquisition to expand its networking capability.
It will be interesting to see any implications this acquisition has on the relationship between VMware and Cisco.
The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in software-defined networking.
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