Public cloud infrastructure company VMware announced on Monday that it has signed a definitive agreement to acquire Boston-based CloudHealth Technologies.
The California company (majority-owned by Dell) will pay approximately $500 million for the Boston-based company, Reuters reported, citing sources familiar with the matter.
Headquartered in Downtown Crossing, CloudHealth Technologies is a provider of a cloud operations platform enabling customers to analyze and manage cloud cost, usage, security and performance. Founded in 2012, it currently serves over 3,000 customers, including Yelp, Dow Jones, Zendesk, Skyscanner and SHI.
In 2017, the company closed a $46 million Series D round with new investor Kleiner Perkins as a leading investor, with participation from Meritech Capital Partners and CloudHealth Technologies’ existing investors .406 Ventures, Sapphire Ventures and Scale Venture Partners.
Around four months ago, CloudHealth added a chief revenue officer from Carbon Black, Ed Filippine, to its management team.
The Boston branch of VMware – a California-based software company with offices in more than 20 countries – had been located in Cambridge for almost 14 years, but moved to the second floor of the Lafayette City Center in 2017.
“As organizations scale their cloud environments and expand the use cases, they struggle with how to leverage a multi-cloud model to drive business transformation,” Tom Axbey, president and CEO of CloudHealth Technologies, said in a statement. “We are thrilled to combine with VMware to address this challenge by delivering a suite of multi-cloud management services that accelerate digital transformation.”
The acquisition, which is subject to customary closing conditions, is expected to close in VMware's third fiscal quarter of 2019.
