VMware to acquire networking leader Nicira
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VMware to acquire networking leader Nicira

VMware solutions are expected to see a large expansion in the near future as the virtualization company prepares to buy out networking company Nicira. The acquired firm is noted for its software-defined networking techniques and a vast catalogue of virtualization tools which should lead to new VMware open source developments.

"The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in software-defined networking," assured VMware CEO Paul Maritz. "VMware has led the server virtualization revolution, and we have the opportunity to do the same in datacenter and cloud networking."

Several big name companies already use Nicira, including AT&T, eBay and Fidelity Investments, and may transfer to the VMware client list after the official settlement.

The purchase will cost around price will be approximately $1.05 billion, as well as $210 million of assumed unvested equity awards, and is set to be made finalized before 2013.

Though the price is steep, Network World explained, the purchase will greatly benefit VMware, as Nicira is recognized as creating sophisticated solutions worldwide. Moreover, Nicira offerings should blend well with the notable and already popular vSphere line.