VMware To Acquire Technology From Parent Company EMC For $200 Million

Virtualization giant VMware is set to acquire select technologies from parent company EMC. VMware will be buying up certain technologies from EMC’s Ionix IT management business, including solutions aimed at delivering improved management and deployment of servers and applications in a virtualized data center.

The transaction is valued at $200 million and is expected to close in the second calendar quarter of 2010. VMware will acquire all technology and intellectual property of FastScale, Application Discovery Manager, Server Configuration Manager and Service Manager. As part of the agreement, EMC will retain the Ionix brand and have full reseller rights to continue to offer customers the products acquired by VMware.

EMC bought up VMware in 2003 for $635 million. Although VMware is traded separately it is majority owned by EMC, and therefore must still engage in arms-length transactions. EMC most recently acquired Archer Technologies in January and quite a few others in 2009. VMware says the acquired products will compliment the company’s development efforts in virtualization. VMware just snapped up Zimbra from Yahoo a few weeks ago.