VMware is popping after Dell says it will buy out shares tracking its subsidiary | Digital Asia

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  • Dell is buying out shares that track the performance of its subsidiary VMware, a software service.
  • VMware is surging in early trading.
  • VMware shareholders will choose between receiving cash or stock in the transaction.
  • Dell shares are also rallying.
  • Watch VMware and Dell trade in real time here.

VMware is surging Monday morning, trading up 9.56%, after its parent company, Dell Technologies, said it will buy out the shares that track its performance as part of a broader effort to simplify its ownership structure.

Dell is offering VMware shareholders 1.3665 class C common Dell shares in exchange for each VMware share. Alternatively, VMware shareholders could opt for $109 in cash. After VMware shareholders choose whether they want cash or Dell stock, they’ll own between 20.8% and 31% of Dell.

Dell investors are applauding the deal, with the stock up 11.41% to $94.23 a share.

“Unprecedented data growth is fueling the era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the , IT, and workforce transformations of our customers,” CEO Michael Dell said.

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