With the aim of enhancing the portfolio of programs that help companies run data centers, business software maker VMware Inc has announced its decision to buy the privately-held SpringSource for $420 million, which will be its biggest-ever acquisition.

Monday saw VMware specifying that the deal will not have material impact on 2009 revenue, but would hurt non-GAAP profitability through at least 2010. It should be noted that the 11-year-old subsidiary of EMC Corp, VMware, after selling virtualization programs, which enhance the efficiency of computer servers by replacing multiple pieces of equipment with one machine, became one of the world's biggest software makers.

The acquisition of the San Mateo, California-based SpringSource, which sells software tools that companies use to write in the Java programming language, will help VMware implement its expansion plans into other areas.

It was forwarded by company spokeswoman Mary Ann Gallo, "We wouldn't do this transaction if we didn't fundamentally believe it would fuel growth and our strategic position with customers." "VMware's third-quarter guidance for revenue between $465 million and $480 million and said annual 2009 revenue was still on track for one percent to 3 percent year-on- year growth," assured Chief Financial Officer Mark Peek.