Want to Predict VMWare M&A? Look at Intel Capital’s Business Social Graph

In 2007, Intel Capital invested $218.5M for a stake in EMC subsidiary VMWare. Today, VMWare (ticker: VMW) is a giant in the virtualization software space with a market capitalization over $40B.

And since VMWare’s IPO, Intel Capital appears to have continued its strategic relationship with the virtualization provider. In fact, an analysis of the Business Social Graph highlights that Intel Capital has invested in seven different companies that have either been co-invested in by VMWare or which were subsequently acquired by VMWare.

The social graph below highlights VMWare’s wide range of investments and acquisitions. Of note, VMWare has made two $1B+ acquisitions since 2012 including Andreessen Horowitz-backed software-defined networking startup Nicira Networks and Accel-backed mobile device management firm AirWatch. VMWare’s investments have tended to center around enterprise IT and mobile app development or performance platforms such as HyTrust, Crittercism and FeedHenry. The green lines below represent investments; orange represents acquisitions.

Adding Intel Capital’s co-investment or prior investing relationships to the visualization, we see that the prolific corporate venture arm has invested in a notable 1/5th of VMWare’s investments and/or acquisitions. Specifically, Intel Capital has co-invested with VMWare in companies including cloud storage platform Maginatics, mobile app-building platform FeedHenry and virtualization security firm HyTrust. Intel Capital-backed companies subsequently acquired by VMWare include cloud authentication firm TriCipher and DynamicOps, a cloud automation and management company.

Interestingly, Intel Capital has also invested after a VMWare acquisition. Enterprise social software company Zimbra, which VMWare sold to Telligent Systems last year, received new investment from both Intel Capital and VMWare in the deal.

Given the prominent relationship between the corporate investment firm and VMWare, we can identify several Intel Capital-backed firms that fit into VMWare’s enterprise IT focus and may eventually become future acquisition targets or co-investments. A full list of potential VMWare M&A targets can be found on the ‘Research’ tab, after logging in to CB Insights. (Note: The list of companies is only available to CB Insights paid subscribers with access to CB Insider.)