VMware completes acquisition of CloudHealth Technologies in three weeks using LinkSquares

Industry
Enterprise Software
Employees
25,000
Location
Palo Alto, California
Founded in 1998VMware
vmware.com

VMware software powers the world’s complex digital infrastructure. The company’s cloud, networking and security, and digital workspace offerings provide a dynamic and efficient digital foundation to over 500,000 customers globally, aided by an ecosystem of 75,000 partners. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough innovations to its global impact.

VMware has completed 45 acquisitions to date.

Challenges

  • As a leading global enterprise software provider, VMware innovates at a rapid pace and prioritizes mergers and acquisitions (M&A) with companies it feels will bring additional value to its customers
  • The VMware team must review massive amounts of commercial contracts and documents with each M&A transaction while working with an urgency to finish as soon as possible
  • Given the time contraints and volume of work inherent in M&A transactions, the VMware team needs to evolve beyond a purely manual review of commercial and IP agreements

Solutions

  • LinkSquares enables VMware to increase its operational efficiency through its automatic report generation and contract summarization tooling
  • The VMware team also found LinkSquares’ intuitive interface made contract search and review processes much easier for different teams
  • Using LinkSquares for its CloudHealth Technologies acquisition, the VMware team conducted its fastest acquisition to-date at three weeks
  • For the CloudHealth Technologies team, using LinkSquares during the acquisition provided huge time and cost savings
  • Without LinkSquares, the CloudHealth team doesn’t believe they could have done everything they did to support the M&A transaction in such a short period of time
  • Both teams found LinkSquares’ customer support to be helpful and proactive

Since its founding in 1998, VMware has been at the forefront of virtualization, digital, and cloud computing software development. VMware’s software and services play a key role in the digital transformation of enterprises around the world. As a leading innovator in the software space VMware has grown and evolved substantially year-over-year. Alongside the company’s internal product development efforts, VMware has consistently focused on mergers and acquisitions (M&A) with companies offering technology solutions that complement VMware’s products and bring additional value to its customer base.

For a company as fast-moving and innovative as VMware, speed and efficiency across the organization are critical, including within the M&A space. However, every M&A the company undertakes requires time-consuming tasks and a daunting amount of reporting and paperwork. The VMware team must review massive amounts of commercial contracts and documents, provide reports on a moment’s notice to multiple teams across the organization, and effectively summarize contract language and terms for broader review.

VMware campus in Palo Alto, CA. Credit: Glassdoor

VMware’s M&A team initially took a manual approach to reviewing, summarizing, and reporting language and terms from the contracts they received during the M&A process. However, the team found themselves losing valuable time to the inefficiency of their manual approach.

“The biggest pain point for us is the quantity of commercial contracts we need to review,” says John Mills, Associate General Counsel and Senior Director of M&A at VMware. “There is so much going on and we work with an urgency to complete everything as soon as possible. With our existing processes it became hard to get through everything efficiently. And, we found ourselves struggling to effectively learn everything we needed about these contracts—especially given various stakeholders in the organization requested different information.”

"LinkSquares certainly helped us make this M&A deal as quick as we could, given the volume of contracts our team needed to review from CloudHealth Technologies."

John Mills

During the M&A process, both VMware and CloudHealth Technologies needed a solution that could:

  • Provide teams across the organizations with an easy-to-use interface as they searched for specific information from different contracts
  • Upload, scan, and generate reports on contracts through the system much more quickly
  • Make commercial contract summarization easier and more efficient
  • Provide better organization and labeling options through automated tagging
  • Generate customized reports quickly
  • Enable users to search terms or word groups across all files within seconds and find what one is looking for – even if the precise wording is unknown
  • For the CloudHealth team, save time and money by not having to hire outside counsel for additional help throughout the diligence review process

The CloudHealth Technologies legal team already used LinkSquares prior to the acquisition and relied on the platform’s full-text search, automated tagging, and robust reporting capabilities throughout the acquisition process. Seeking additional support, the team worked closely with LinkSquares to understand how to take advantage of the reporting and key search capabilities as it quickly went through its contracts.

"It was a herculean effort to successfully complete the M&A on the timeline we had. If we hadn’t had everything in place with LinkSquares, I don’t believe we could have done what we did. LinkSquares was a huge time and money saver for my team."

Jaymie Cameron

Using LinkSquares, the VMware and CloudHealth Technologies teams were able to complete the acquisition within three weeks. “Our commercial team of attorneys was very happy with LinkSquares,” says Mills. “It substantially cut down on the need for and dependence on manual contract summaries and reviews and helped us focus on the key substantive aspects of the contracts.”

For CloudHealth Technologies, LinkSquares became an extension of the legal team and integral to its ability to respond and move so quickly through the acquisition. “If you’re a fast-paced and growing startup with minimal legal resources and time, you should use LinkSquares,” says Jaymie Cameron, Corporate Counsel at CloudHealth Technologies. “It’s as simple as that.”

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