AAA Virtustream flows into EMC in $1.2bn deal

Virtustream flows into EMC in $1.2bn deal

IT technology provider EMC Corporation agreed yesterday to buy US-based cloud computing software provider Virtustream for $1.2bn, giving exits to software company SAP and semiconductor technology producer Intel.

Founded in 2008, Virustream provides cloud infrastructure technology and services for enterprises. Post-acquisition, it will act as EMC’s new managed cloud services business, enabling EMC to offer a full range of hybrid cloud infrastructure and services.

Virtustream had raised $120m in funding, according to press releases and regulatory filings, including $40m from a 2013 series D round led by SAP.

Other investors in Virtustream included Intel Capital, Intel’s corporate venturing unit, which first invested in the company as part of its $40m series A round in 2010, as well as private equity and venture capital firm Noro-Moseley Partners, VC fund TDF Ventures, and VC firms Columbia Capital and Blue Lagoon Capital.

SAP chief executive Bill McDermott said: “SAP has a long-term partnership with Virtustream to host mission-critical applications in the cloud. We are excited to see Virtustream become part of EMC.

“SAP will continue to serve as a partner with the new EMC managed cloud services business and we remain ever committed to supporting the hybrid cloud landscapes of shared customers around the world.”

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