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2019 Press Releases

August 23, 2019

VMware Enters Definitive Agreement to Acquire Carbon Black

Editor’s Comment: It seems like cybersecurity companies are being snapped up left, right and centre, the latest being endpoint security company, Carbon Black, which is now well on its way to being acquired by VMware. This comes after recent acquisition announcements of other cybersecurity vendors over the past year, such as Cylance (acquired by Blackberry), Webroot (by Carbonite), BeyondTrust (by Bomgar) and Symantec (by Broadcom, which may or may not actually happen).

Having extensively covered both VMware and Carbon Black over the years here on CSA and our sister publication, DSA, we have to say that this acquisition makes a lot of sense to complement and strengthen VMware’s own offerings. Carbon Black strength lies in its ‘next-gen’ cloud-native endpoint protection platform that is powered by big data and behavioural analytics technologies – something that's not currently available from VMware’s security portfolio.

Which security company will be gobbled up next? Trend Micro? CrowdStrike? FireEye? Fortinet? Anyone?

With the global cyber security market size expected to reach USD 241.1 billion by 2025, we’re sure these companies will become too enticing to pass up by the bigger IT players.

The full acquisition press release follows:

VMware, Inc., a leading innovator in enterprise software, and Carbon Black, a leader in cloud-native endpoint protection, announced that the companies have entered into a definitive agreement by which VMware will acquire Carbon Black in an all cash transaction for $26 per share, representing an enterprise value of $2.1 billion.

Following the close of the transaction, VMware will be positioned to provide a highly differentiated, intrinsic security cloud that will better protect enterprise workloads and clients through big data, behavioral analytics and AI.

Carbon Black is a leading next-generation security cloud provider with more than 5,600 customers and 500 partners globally. The company’s innovative cloud-native security platform leverages big data and behavioral analytics to provide comprehensive endpoint protection against even the most advanced cyberattacks.  The combination of Carbon Black’s solutions with VMware’s security offerings, including AppDefense, Workspace ONE, NSX and SecureState, will create a modern security cloud platform for any application, running on any cloud, on any device.  This combined offering will provide customers advanced threat detection and in-depth application behavior insight to stop sophisticated attacks and accelerate responses.  

The distribution and enterprise reach of VMware and Dell will further accelerate the adoption of Carbon Black in the enterprise, both through direct selling and through partners, including leading managed security players, channel partners and system integrators.

“The security industry is broken and ineffective with too many fragmented solutions and no cohesive platform architecture. By bringing Carbon Black into the VMware family, we are now taking a huge step forward in security and delivering an enterprise-grade platform to administer and protect workloads, applications and networks,” said Pat Gelsinger, CEO, VMware. “With this acquisition, VMware will also take a significant leadership position in security for the new age of modern applications delivered from any cloud to any device.”

“Today marks an exciting milestone for Carbon Black, VMware and the entire cybersecurity industry,” said Patrick Morley, CEO, Carbon Black. “We now have the opportunity to seamlessly integrate Carbon Black’s cloud-native endpoint protection platform into all of VMware’s control points. This type of bold move is exactly what the IT and security industries have been looking to see for a very long time. We look forward to working with the VMware team to continue delivering a modern security cloud platform to customers around the world. Additionally, we’re pleased that today’s transaction provides Carbon Black’s shareholders with immediate and substantial value.”