VMware Inc to Acquire Nicira, Inc.

VMware Inc announced it has signed a definitive agreement to acquire Nicira, Inc., a pioneer in software-defined networking (SDN) and is in network virtualization for open source initiatives. VMware will acquire Nicira for approximately $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards. The acquisition is subject to regulatory approvals and other customary closing conditions. The parties expect the acquisition to close during the second half of 2012. The acquisition has been approved by the boards of directors of both VMware and Nicira and the stockholders of Nicira.