Cisco Systems Inc is buying a $150 million stake in virtualization software maker VMware Inc, becoming the second technology giant this month to put a major investment in the company as VMware prepares to go public.
Cisco will own 1.6 per cent of VMware''s common stock when the investment closes, the companies said in a joint statement Friday. They will also collaborate on joint product development and marketing.
Earlier this month, Intel Corp., the world''s largest semiconductor company, also announced it will make a major investment in Palo Alto-based VMware. Intel said it will pay $218.5 million, giving it 2.5 per cent of VMware after the initial public offering.
Cisco and VMware said one of the goals of the investment is to speed the adoption of VMware''s software on computers using Cisco''s networking gear. San Jose-based Cisco is the world''s largest maker of the routers and switches that direct data over computer networks.
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