Wednesday, October 2, 2013

Pivotal buys elite mobile development shop Xtreme Labs

Michael O'Donnell / VentureBeat



Pivotal CEO Paul Maritz on stage with VentureBeat's Matt Marshall




has made its first acquisition, a Toronto-based mobile development shop called . Xtreme Labs works with customers in a variety of sectors, such as health care and media, and its biggest clients include and .



San Francisco-based Pivotal did not disclose the final sum for the buy-up, but the company has no shortage of funds. , but it is not a startup in the traditional sense. Pivotal is a spinout venture from and , and was endowed with over $100 million in funding from , among others.



The company also recruited over 1,000 people from EMC, VMware, and Pivotal Labs, an elite San Francisco-based Web development firm that EMC acquired in March, 2012. Xtreme Labs is similar to Pivotal Labs, as both focus on agile software development.



Pivotal has remained fairly tight-lipped about his plans for the future, only speaking in broad terms about building a . Today's acquisition will put Pivotal in a strong position to offer mobile and Web-based services to enterprise customers.



"We put Pivotal together because we have a strong belief that clouds will become the new computers -- there will be many of them," said Pivotal chief executive Paul Maritz, the former CEO of VMware. Don't miss the full interview at the bottom.



that Xtreme Labs sold for $65 million in cash. It's not yet clear whether the 300 employees will join Pivotal, but it's likely, given that this was a talent acquisition.



Curious to learn more about Pivotal? I spoke with Maritz at our recent CloudBeat conference.



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