EMC will acquire the privately-held Virtustream in an all cash transaction that will see it form part of EMC’s managed cloud services business.
The value of the deal is said to be around $1.2 billion and represents part of EMC’s strategy to help move all applications to cloud-based IT environments.
Virtustream is used to migrate, run and manage mission-critical applications in the cloud including SAP.
Joe Tucci, EMC CEO, said: "Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry’s fastest-growing and most important sectors."
"With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer."
Access to Virtustream’s cloud software and IaaS portfolio will be delivered directly to customers and through the EMC Federation service provider partners, which will receive access to the xStream cloud management software platform.
The company which was founded in 2009 by Rodney Rogers and president Kevin Reid, offers application lifecycle automation and orchestration which focuses on I/O-intensive enterprise applications.
Rodney Rogers, President & CEO, said: "Virtustream has established itself as an industry leader and innovator for running mission-critical enterprise applications in the cloud."
"We’re proud to be joining the EMC Federation where our combined capabilities, products and services will allow us to accelerate our vision of delivering the platform of record for enterprise systems, and address the complete breadth of cloud computing needs."
