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Intel Capital will invest US$218.5 million in VMwareâ€™s Class A common stock subject to customary regulatory and other closing conditions including Hart-Scott-Rodino (HSR) review.Â At the completion of VMwareâ€™s planned initial public offering and upon closing of the investment, Intel will own approximately 2.5 percent of VMwareâ€™s total outstanding common stock (less than one percent of the combined voting power of VMwareâ€™s outstanding common stock).Â Pursuant to the investment, an Intel executive is expected to be appointed to the VMware Board of Directors.
Intelâ€™s investment is intended to foster strengthened inter-company collaboration towards accelerating VMware virtualization product adoption on Intel architecture and reinforcing the value of virtualization technology for customers, according to statement from both companies.Â In addition, VMware and Intel have entered into a routine and customary collaboration partnering agreement that expresses their intent "to continue to expand their cooperative efforts around joint development, marketing and industry initiatives."