VMware Inc. (NYSE:VMW) has acquired cybersecurity startup Lastline, the latter announced Thursday.

What Happened

Lastline said the boards of both companies had approved the acquisition and the transaction is expected to close by July, subject to regulatory approval. The startup didn't disclose details of the deal.

"The protection of our customers is at the center of what we do at Lastline," the malware detection platform developer said in a statement.

"By joining forces with VMware, we will be able to offer additional capabilities to our customers and bring to market comprehensive security solutions for the data center, branch office and remote and mobile users."

According to TechCrunch, which first reported the news, VMware is planning to lay off about 40% of Lastline's staff, or about 50 employees.

Why It Matters

VMware beat analyst expectations in its first-quarter earnings report this year, posting earnings per share of $1.52, Barron's reported.

Morgan Stanley earlier this week upgraded the software company's price target to $149.

VMware Price Action

VMware's shares closed nearly 0.9% lower at $148.08 on Thursday.