PALO ALTO, Calif. -- EMC Corporation (NYSE: EMC - News), the world leader in information infrastructure solutions, today announced its intention to sell approximately 10% of VMware via an initial public offering (IPO) of newly issued VMware stock. EMC will retain ownership of the remaining shares of VMware, and has no intention of spinning out or otherwise divesting this ownership interest. VMware is the global leader in software for industry-standard virtualized desktops and servers and is currently a wholly-owned subsidiary of EMC.
Joe Tucci, EMC Chairman, President and Chief Executive Officer, said, "VMware is one of the fastest-growing businesses in the history of the software industry. We expect the IPO to unlock more of VMware's value for EMC shareholders while also strengthening its ability to retain and attract the software industry's top talent."
VMware had record sales in 2006, growing revenues 83% during the year to $709 million. It finished the fourth quarter of 2006 with year-over-year revenue growth of 101%, delivering accelerating year-over-year growth for the fifth consecutive quarter.
Diane Greene, VMware President and EMC Executive Vice President, said, "VMware has secured its leadership position in the virtualization market through industry-leading and award-winning products. Our focus on people, innovation, and the customer adoption of our products has enabled us to continue to grow our company and deliver significant value. We expect that the IPO will help us execute on our vision of an industry standard virtual infrastructure. It should enable us to accelerate our ability to find and attract great people, continue to invest in great product development, and grow an even stronger partner ecosystem."
VMware's products have saved organizations of virtually all sizes and industries millions of dollars in hardware and operational expenses, power and cooling costs, reduced downtime expenses, and improved desktop manageability. VMware has brought these savings to customers through innovative and groundbreaking products that have a reputation for quality and excellence. In 2006, VMware received 30 awards for innovation and product excellence, including eWEEK's award for being one of the most 25 influential products of the past 25 years.