(Reuters) — VMware stated on Thursday it purchased two software program firms in separate offers valued at about $5 billion, seeking to increase the vary of services and products it provides to its company shoppers.

In a deal brokered by Dell Applied sciences, VMware purchased Pivotal Software program for $2.7 billion. Dell is a controlling stakeholder in each firms.

Individually, VMware stated it could purchase software program maker Carbon Black for about $2 billion in money because it seeks to increase the vary of safety merchandise.

VMWare makes cloud computing software program, whereas Pivotal gives instruments for software program builders engaged on cloud providers. Carbon Black, then again, has a cloud safety platform that makes use of huge knowledge and behavioral analytics to guard towards cyberattacks.

VMware can pay $26 per share for Carbon Black at a premium of 6% over its Thursday shut.

“By bringing Carbon Black into the VMware household, we are actually taking an enormous step ahead in safety and delivering an enterprise-grade platform to manage and shield workloads, purposes and networks,” VMware CEO Pat Gelsinger stated in an announcement.

The corporate expects Carbon Black and Pivotal to meaningfully add to its income within the first yr after closing the offers by January subsequent yr.

Dell had taken Pivotal public final yr for $15 per share. Thursday’s Pivotal deal is for a blended value per share of $11.71, wherein Class A stockholders will get $15 per share.

Dell’s stake in Pivotal shall be exchanged for VMware share.

The corporate and its founder Michael Dell owned 131.Three million shares of Pivotal Class B inventory, not together with the 44.2 million shares held by VMware, in response to a regulatory submitting.

Pivotal shares rose 9% in prolonged buying and selling, whereas these of Carbon Black had been up practically 6%. VMware shares fell 7% and Dell shares shed 3%.