VMware today announced that Intel, through its global investment arm, Intel Capital has agreed to become an investor in VMware. Intel Capital will invest $218.5 million in VMware's Class A common stock subject to customary regulatory and other closing conditions including Hart-Scott-Rodino (HSR) review. At the completion of VMware's planned initial public offering and upon closing of the investment, Intel will own approximately 2.5 percent of VMware's total outstanding common stock (less than one percent of the combined voting power of VMware's outstanding common stock). Pursuant to the investment, an Intel executive is expected to be appointed to the VMware Board of Directors.

Intel's investment is intended to foster strengthened inter-company collaboration towards accelerating VMware virtualization product adoption on Intel architecture and reinforcing the value of virtualization technology for customers.

In addition, VMware and Intel have entered into a routine and customary collaboration partnering agreement that expresses their intent to continue to expand their cooperative efforts around joint development, marketing and industry initiatives.