EMC has announced plans to acquire cloud software and services provider Virtustream in an all-cash deal valued around $1.2 billion.
EMC said it will merge Virtustream's portfolio into its Federation Enterprise Hybrid Cloud offering, creating a new managed cloud services business that supports all applications, all workloads and all cloud models.
The Massachusetts-based storage giant calls the acquisition a "transformational element" of its hybrid cloud strategy.
"With Virtustream in place, EMC will be uniquely positioned as a single source for our customers' entire hybrid cloud infrastructure and services needs," EMC CEO Joe Tucci said in a statement. "It's a game changer."
Founded in 2009, Virtustream specializes in lifecycle automation and orchestration with a particular focus on mission-critical enterprise applications such as SAP S/4HANA (SAP is also a Virtustream investor). Virtustream's xStream platform is tightly integrated with VMware vSphere, another EMC-controlled property.
Virtustream customers include The Coca-Cola Company, Domino Sugar, Heinz, Hess Corporation, Kawasaki, Lexmark, and Scotts Miracle-Gro.
As part of the deal, Virtustream will continue to operate as a separate EMC Federation business, with CEO and co-founder Rodney Rogers reporting directly to Tucci.
Each acquisition fit strategically within EMC's hybrid cloud strategy. Cloudscaling delivers OpenStack-based software for hybrid cloud deployments, Maginatics focuses on data mobility across services, and Spanning provides app and data backup tools. Virtustream will help EMC stitch everything together.