The company also announced its latest financial results.
VMWare will pay $26 a share in cash for Carbon Black, a security software provider in a deal with an enterprise value of $2.1 billion.
VMware will pay $15 a share for Class A shares of Pivotal. It will exchange 0.055 shares of VMware Class B shares for each Class B share of Pivotal held by Dell Technologies (DELL) , which holds a controlling interest in both companies. VMware said the transaction has an enterprise value of $2.7 billion.
VMware reported non-GAAP net income of $667 million, or $1.60 a share, vs $638 million, or $1.54 a share in same period a year ago.
Shares of VMware fell $9.02, or 6.1%, to $139.13 in after-hours trading.
Pivotal shares rose $1.15, or 8.4%, to $14.85.
Carbon Black shares rose $1.41, or 5.8%, to $25.91 in after-hours trading after gaining 7.7% in the regular session ahead of the announcement.
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