VMware had officially announced the acquisition on Zimbra to boost the company vCloud effort. Zimbra provide free email client and collaboration software to the users. Zimbra was previously owned by Yahoo Inc. Under the terms of the agreement, VMware will purchase all Zimbra technology and intellectual property. Yahoo! will have the right to continue to utilize the Zimbra technology in its communications services, including Yahoo! Mail and Yahoo! Calendar.

You can view the official press release from VMware Official Website.

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