AAA Ford makes Pivotal investment in $253m round

Ford makes Pivotal investment in $253m round

Automotive manufacturer Ford led a $253m funding round for US-based software development technology provider Pivotal today as part of a strategic collaboration agreement, VentureBeat has reported.

The round also included software producer Microsoft, industrial product maker General Electric, data management company EMC and cloud and virtualisation service provider VMWare, Reuters has reported, adding that Ford supplied $182m of the cash.

Pivotal closed the round at a post-money valuation of $2.8bn, a source familiar with the matter told VentureBeat.

Pivotal produces tools that assist businesses in developing cloud-based software, as well as supplying open-source data analytics software and helping them with their own software through a consultancy division called Pivotal Labs.

The company was spun out of EMC and VMWare in 2013, with GE investing $104 in return for a 10% stake. The companies had acquired Pivotal, then known as Pivotal Labs, for an undisclosed sum the year before.

Ford invested in the latest round as part of a three-year strategic partnership through which Pivotal will support the carmaker in building its connected car technology.

Ford’s Smart Mobility initiative brings together connectivity, mobility, autonomous vehicles, data and analytics technology development, in addition to user experience technologies such as Sync Connect, a recently released feature that gives drivers access to their car’s features through a mobile app.

Software developers at Ford are already collaborating with Pivotal Labs engineers and intend to build part of its connected vehicle platform on top of the Pivotal’s Cloud Foundry platform.

Marcy Klevorn, vice-president and chief information officer for Ford, said: “As we grow to become both an automaker and a mobility company, having leading software development expertise is critical to delivering at the speed consumers expect.

“Customers today are used to frequent software updates on their mobile devices, and expect them with all technology. This collaboration with Pivotal allows for quicker vehicle software updates and an even better user experience for Ford customers.”

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