VMware Acquires Dell-Backed Cybersecurity Startup Lastline
VMware Inc. (NYSE: VMW) has acquired cybersecurity startup Lastline, the latter announced Thursday.
What Happened
Lastline said the boards of both companies had approved the acquisition and the transaction is expected to close by July, subject to regulatory approval. The startup didn't disclose details of the deal.
"The protection of our customers is at the center of what we do at Lastline," the malware detection platform developer said in a statement.
"By joining forces with VMware, we will be able to offer additional capabilities to our customers and bring to market comprehensive security solutions for the data center, branch office and remote and mobile users."
According to TechCrunch, which first reported the news, VMware is planning to lay off about 40% of Lastline's staff, or about 50 employees.
Why It Matters
Lastline has raised $52.5 million to date, according to Crunchbase. Dell Technologies Inc.'s (NYSE: DELL) investment arm had led a $10 million investment in the startup back in 2014. Dell is also a majority stakeholder in VMware.
VMware beat analyst expectations in its first-quarter earnings report this year, posting earnings per share of $1.52, Barron's reported.
Morgan Stanley earlier this week upgraded the software company's price target to $149.
VMware Price Action
VMware's shares closed nearly 0.9% lower at $148.08 on Thursday.
See more from Benzinga
American Well Files For IPO As Pandemic Leads To Telehealth Demand Surge
HSBC Backs China's New National Security Law For Hong Kong As It Seeks Stability In Key Market
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
