Yahoo on Tuesday plans to announce the sale of Zimbra to VMware, according to a report, as it moves away from the business of an open-source rival to Microsoft's Exchange.
Sunnyvale, California, Yahoo is expected to unveil the deal to sell the open-source email company to the virtualization software maker for a price above $100 million.
The acquisition would give VMware a way to move up the stack in its virtualization software, according to the report at AllThingsD.com,
San Mateo, California, Zimbra is expected to sell for less than the $350 million paid by the troubled search company in 2007, the report said.
For Yahoo, the move is part of efforts under CEO Carol Bartz to sell or shutter non-core company units.