Ex-Pivotal Investors Lose $20 Share Valuation Bid in VMWare Deal

Pivotal Software Inc.'s fair value at the time of a 2019 go-private merger with VMWare Inc. was $14.83 per share, a Delaware judge ruled Monday in an appraisal suit brought by the company’s former investors.

The cloud computing company’s former Class A common stockholders argued that shares should have been worth $20 at the time of the merger, while Pivotal urged a valuation closer to $12. The correct answer is much closer to the $15 per share price at which VMWare, a partial subsidiary of Dell Technologies Inc., acquired Pivotal, the Delaware Chancery Court said.

• Chancellor Kathaleen St. J. ...