EMC is reportedly planning to acquire Cisco System’s stake in their joint venture (JV) VCE.
Established in 2009 as a one-stop shop for data centre equipment, the JV integrates Cisco’s networking equipment and servers with EMC’s storage equipment and software from EMC’s VMware.
Citing one of the persons close to the matter, Bloomberg reported that EMC will pay Cisco a ‘de minimus’ amount for the part of its stake.
Upon the completion of the transaction, the JV will be incorporated into EMC’s business and VCE’s sales will be blended into its quarterly results, which would further deliver a revenue boost.
Cisco, which invested $716m in VCE owns a 35% stake, will remain as an investor in the VCE business with a smaller stake.
EMC has been taking into account strategic options, which include a spinoff of VMware, of which it is the majority owner.
Last month, the data storage products manufacturer also held merger proposals with rivals Dell and HP, in the midst of pressure from activist investor and the expected exit of its long-time CEO, while negotiations stalled over differences on price.
Content from our partners
The firm also explored options including a sale.
