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The Associated Press February 28, 2011, 8:50AM ET

Software company VMware announces stock buyback

Computer service and software company VMware Inc. said Monday its board has decided to buy up to $550 million shares of its Class A common stock through the end of 2012.

The shares will be purchased from time to time in the open market or through private transactions, the company said in a statement.

VMware also said its current $400 million stock buyback program announced in March of last year is expected to be finished by this March.

Based in Palo Alto, Calif., the company provides "cloud computing" software and services to help companies do business over the Internet.

Shares of VMware rose $1.41, or 1.7 percent, to $87 in premarket trading.

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