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Wednesday, October 22, 2014

EMC to purchase much of Cisco's stake in joint venture VCE, (NYSE: VMW)

Data storage products maker EMC Corp said it will purchase much of Cisco System Inc's stake in their joint venture VCE for an undisclosed sum.VCE, set up in 2009 as a one-stop shop for data centers, bundles Cisco's networking equipment and servers with EMC's storage gear and software from EMC's virtualization software unit VMware Inc.Reports of EMC and Cisco encroaching on each other's turfs had sparked speculation that the partnership was fraying. Cisco, which had a 35 percent stake in the joint venture, will retain a 10 percent stake in VCE.EMC said it will merge VCE into its business, but this will have no impact on its 2014 results.

VMware, Inc., is the provider of virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology (IT) resources. Shares of VMW remained unchanged at $88.19. In the past year, the shares have traded as low as $76.51 and as high as $112.89. On average, 1743480 shares of VMW exchange hands on a given day and today's volume is recorded at 72453.