EMC's Pivotal buys Xtreme Labs for $65M

Courtesy

Paul Maritz, CEO of EMC's Pivotal spinout, said the company's purchase of Xtreme Networks will give it the development experience to make better enterprise mobile apps.

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Jon Xavier: Web Producer- Silicon Valley Business Journal; Email | Twitter | Google+

In a bid to bulk up its mobile capabilities, Pivotal has acquired Xtreme Networks, a mobile strategy and development business that makes enterprise apps.

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. "