EMC Corporation EMC is buying out a majority of the stake that Cisco Systems, Inc. CSCO has in VCE, which sells high-end data center equipment, according to Bloomberg news.
Cisco will remain an investor in the VCE business, but at a lowered stake. Cisco presently owns about 35 percent of the VCE venture.
In 2010, Cisco, EMC, Intel and VMWare joined forces to form VCE, which structures systems based on the combined companies technology. The increased stake in VCE could potentially be accretive to EMC, and may stifle demands to spin out EMC's stake in VMW.
EMC also reported earnings Wednesday morning, which missed on both the top and bottom line. Shares were trading fractionally lower at $27.10 in the premarket.
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