Wireless technology manufacturer Qualcomm and flash storage technology provider SanDisk will exit US-based virtualisation software developer Ravello Systems in an acquisition by computing technology producer Oracle.
Oracle did not disclose the purchase price but a source familiar with the matter told VentureBeat it was “close to $500m”.
Founded in 2011, Ravello supplies nested virtualisation software to businesses so they can use leading public clouds as an extension of their data centre. The acquisition comes as Oracle looks to scale up its cloud services offering to compete with the likes of Amazon and Microsoft.
Rami Tamir, Ravello’s CEO, said: “Ravello will join in Oracle’s [infrastructure-as-a-service] mission to allow customers to run any type of workload in the cloud, accelerating Oracle’s ability to help customers quickly and simply move complex applications to the cloud without costly and time-consuming application rewrites.”
Ravello had raised $54m in venture funding, including $28m in a January 2015 series C round co-led by Qualcomm and SanDisk’s corporate venturing units: Qualcomm Ventures and SanDisk Ventures.
The series C round also included Sequoia Capital, Bessemer Venture Partners, Norwest Venture Partners and Vintage Investment Partners, the first three of which participated as existing investors.