Intel and VMware announced today that Intel Capital is assuming a $218.5 million stake in VMWare. Intel Capital will invest $218.5 million in VMware’s Class A common stock subject to customary regulatory and other closing conditions including Hart-Scott-Rodino (HSR) review.
Intel will purchase 9.5 million Class A shares at $23 per share, which, at the completion of VMware’s forthcoming IPO, will give Intel about a 2.5 percent stake in the company.
VMware has indicated the price range on its offering: $23-25. Assuming this pricing is somewhere in the mid-range, the company will raise a cool $741.4 million. According to bloggingstocks.com this IPO “should be scorching hot”. You can find the prospectus at the SEC web site.
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