EMC's Pivotal buys Xtreme Labs for $65M
- Jon Xavier
- Web Producer- Silicon Valley Business Journal
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A release
announcing the sale doesn't mention price, but AllThingsD reports that the
deal saw Pivotal pay about
$65 million in cash for the Canadian firm, not counting separate incentives
to enable it to keep most of Xtreme's 300 workers.
Formed as a joint project between EMC and VMWare late last year, Pivotal
provides a cloud platform of big data and enterprise software products aimed at
large businesses. It's made up of various former EMC and VMware divisions,
including the analytics technology provider Greenplum and Pivotal Labs, a
software development firm.
Xtreme Networks will join the
Pivotal Labs division, but its workforce will stay in Toronto after the sale, the
Globe and Mail reports. Pivotal will have a team of about 500 working on app
development after the deal is completed, and plans to hire to bulk up the team
even more.
Xtreme Networks will add
much-needed mobile development chops to the mix, enabling Pivotal to develop
better versions of its products for mobile devices, an area that CEO Paul Maritz said is absolutely
critical for Pivotal going forward.
"Every enterprise today has to exploit the opportunities offered by mobile,"
Maritz said in a release "This requires new ways of thinking and working, and
the need to get it right the first time and every time. "Jon Xavier is Web Producer at the Business Journal. His phone number is 408.299.1826.
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