VMWare wants to buy Zimbra software from Yahoo

VMware Inc agreed to buy email software vendor Zimbra by Yahoo Inc, as Yahoo continued to sell parts not related to core consumer business on the Web.

The companies didn't disclose the terms of the Zimbra's sale, which makes software for Web-based e-mail and calendar systems that compete with those from Google Inc, the IBM Corp and Microsoft Corp Yahoo paid 350 million U.S. dollars for Zimbra in October 2007 as part of a takeover move that preceded the arrival of current CEO Carol Bartz, who was hired last year to turn around the company match.

VMware sells the programs used by companies to enhance the efficiency of computer hardware - allowing a machine to perform the work of multiple pieces of equipment. Programs also help companies manage complex data centers.

Jefferies & Co analyst Katherine Egbert said he saw how the line Zimbra email and calendar software will complement the existing products of VMware.

VMware, which is majority owned by EMC Corp, said the acquisition is expected to close in the first quarter of this year.