- Shares of VMware slipped 4% in aftermarket trading, while Pivotal gained as much as 8% and Carbon Black saw shares halted.
- Read more on Markets Insider .
VMware slides after agreeing to buy Carbon Black and Pivotal for a total of $4.8 billion (VMW)
Software company VMware agreed to acquire Carbon Black and Pivotal for a total value of $4.8 billion.
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Software company VMware said on Thursday that it will acquire two companies for a total of $4.8 billion: Carbon Black for $2.1 billion and Pivotal for $2.7 billion.
The deal is expected to close by the end of January 2020, CNBC reported .
The deals combine two of VMware's largest acquisitions to date. Shares of Pivotal gained as much as 8% in aftermarket trading on the news, while shares of VMware fell more than 4%. Carbon Black shares were halted after the announcement.
The acquisitions will strengthen VMware's position in the security market and hybrid-cloud infrastructure operations, CNBC reported.
VMware will pay $26 dollars per share for Carbon Black, a 14% premium from where the shares were trading at Thursday's close. Pivotal is being bought for a blended price per share of $11.71.
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