UPDATE 1-VMWare to buy Zimbra email unit from Yahoo

* Financial terms not disclosed

* Part of Yahoo effort to focus on consumer Web business

BOSTON Jan 12 (Reuters) - VMware Inc (VMW.N) agreed to buy email software maker Zimbra from Yahoo Inc (YHOO.O) as Yahoo continued to sell off divisions that are not related to its core consumer Web business.

The companies did not disclose the terms of the sale of Zimbra, which makes software for Web-based email and calendar systems that compete with those from Google Inc (GOOG.O), IBM Corp (IBM.N) and Microsoft Corp (MSFT.O). Yahoo paid $350 million for Zimbra in October 2007 as part of an acquisition drive that preceded the arrival of current CEO Carol Bartz, who was hired last year to turn around the struggling company.

VMware sells programs that companies use to boost the efficiency of computer hardware -- allowing one machine to perform the work of multiple pieces of equipment. Its programs also help businesses manage complex data centers.

Jefferies & Co analyst Katherine Egbert said she did see how Zimbra's line of email and calendar software would complement VMware's existing products.

VMware, which is majority owned by EMC Corp (EMC.N), said it expected the acquisition to close in the first quarter of this year. (Reporting by Jim Finkle; editing by Andre Grenon)