Technology firm EMC Corp. (EMC) said Wednesday it will acquire most of Cisco Systems Inc.'s (CSCO) stake in joint venture VCE.
EMC stated that Cisco and VMware will continue as strategic partners and investors, with Cisco having an approximately 10% equity interest in VCE. VCE sells high-end data center equipment.
VCE embarks upon this new structure with full support from its original founders Cisco, EMC and VMware. As part of the EMC family, VCE will remain intact under the leadership of CEO Praveen Akkiraju and his senior team with its own mission, operating charter and organizational structure.
VCE's reorganization and recapitalization, which will result in the acquisition of a controlling interest by EMC, are expected to be completed in the fourth quarter of 2014, subject to customary regulatory approvals, and are expected to have no material impact to EMC GAAP and non-GAAP earnings per share for the full 2014 fiscal year.
Once finalized, EMC will begin reporting VCE financials as part of its consolidated financial statements.
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