Shares of Pivotal Software, Inc. (PVTL) - Get Report jumped in after-hours trading Wednesday after it was disclosed that VMware, Inc. (VMW) - Get Report is in talks to acquire all of its Class A shares for $15 each.
Pivotal jumped $5.70, or 69% to $14 in after-hours trading.
In an SEC filing, Dell Technologies Inc. (DELL) - Get Report said special committees of the boards of VMware and Pivotal "are proceeding to negotiate definitive agreements with respect to a transaction to acquire all of the outstanding shares of Class A common stock of Pivotal for cash at a per share price equal to $15."
Dell said in the filing that it is in discussions with VMware as well to determine an exchange ratio to convert all the Class B shares of Pivotal it holds to Class A shares.
Michael S. Dell and Dell Technologies hold 131,306,110 Class B shares of Pivotal, according to the filing.
In a statement, VMware confirmed talks are underway, but said it would have no further comment unless and until an agreement is reached.
According to the statement "Pivotal is a long-term strategic partner and we're already successfully collaborating to help enterprises in their application development and infrastructure transformation."