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.
"We view the Cisco/VCE news as a 'yawner' given that EMC right now is facing a plethora of growth and strategic challenges and the last thing on investors' minds is the future of VCE," FBR Capital Markets analyst Daniel Ives wrote in a note to clients.
Activist investor Elliott Management has been pushing hard for EMC to pursue merger or spinoff opportunities.
Paul Singer, another activist investor, asked the company earlier this month to separate its VMware subsidiary.
EMC, which cut its full-year profit forecast on Wednesday, had contributed $1.26 billion in funding to VCE since inception and owned about 58 percent of the joint venture as of June 30.
EMC's plan to buy Cisco's stake in VCE was first reported by Bloomberg on Tuesday.
(Reporting By Kanika Sikka and Supantha Mukherjee in Bangalore; Editing by Feroze Jamal)
____________________________________
FIND OUT MORE ABOUT 'BEN Latest News'
'Like us on Facebook'
http://www.facebook.com/pages/BEN-Latest-News/443681719077160
'Follow us on Twitter'
www.twitter.com/benlatestnews
'Follow Us on Google+'
http//www.plus.google.com/+Benlatestnews
For Advertisment and Partnering with us contact the CEO on:
BEN Latest News™
BB PIN:260158B5
Skype: cwizard123
Phone:(+234)-807-591-2014
Work:(+234)-903-027-0566
Mobile:(+234)-818-505-0866
BizLine:(+234)-812-595-5300
Email: cwizard123@gmail.com
BLNs: benlatestnews@gmail.com
On: Facebook, Twitter | LinkedIn - @cwizard123
0 comments:
Post a Comment