PALO ALTO, CA -- (Marketwired) -- 12/15/16 -- VMware, Inc.(NYSE: VMW) , a global leader in cloud infrastructure and business mobility, today announced that VMware has entered into a Stock Purchase Agreement with Dell Technologies, Inc., under which VMware agreed to purchase $500 million worth of VMware Class A Common Stock currently held by Dell's subsidiary, EMC Corporation. Separately, Dell Technologies plans to use the $500 million proceeds to repurchase the Dell tracking stock for VMware, DVMT, as described in Dell's announcement today.

The $500 million stock purchase is expected to be completed during VMware's first fiscal quarter ending May 5, 2017. The impact of the $500 million Stock Purchase Agreement on VMware's Q4 fiscal 2016 and full year 2016 diluted share count and non-GAAP earnings per share is not expected to be material. This $500 million stock purchase is the only stock purchase plan currently authorized. As VMware disclosed on its Q3 2016 earnings call, a previously authorized $1.2 billion stock buyback was completed in early Q4 2016. VMware intends to comment on additional plans for returns of capital to stockholders, if any, during VMware's Q4 2016 earnings conference call in January 2017.