EMC Signs $1.2B Cash Deal to Buy Virtustream


cloudITEMC (NYSE: EMC) has agreed to purchase Virtustream for approximately $1.2 billion cash in a bid to help enterprise clients migrate to cloud-based information technology systems.

The companies expect to close the transaction in the third quarter of 2015 and Virtustream, led by Rodney Rogers, will operate as a managed cloud services provider under EMC’s federation business upon the deal’s closure, EMC said Tuesday.

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Bethesda, Maryland-based Virtustream develops automation and orchestration tools for organizations to manage enterprise-grade cloud computing applications such as SAP‘s S/4HANA business app suite.

The acquisition is also intended give EMC and its partners access to the Virtustream-built xStream platform to help public and private sector customers secure their cloud IT systems.

EMC also seeks to integrate Virtustream’s infrastructure-as-a-service offering and other managed cloud products into EMC’s federation enterprise hybrid cloud solution portfolio.

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