November 3, 2010
Dell To Buy Cloud Tech Company Boomi
US computer stalwart Dell on Tuesday announced it will buy cloud-computing services company Boomi as it searches for ways to provide software over computer networks.
Dell, the number 2 computer manufacturer behind Hewlett-Packard, did not disclose financial details of the transaction.
The Berwyn, Pennsylvania-based Boomi, founded in 2000, raised $4 million in 2008 in institutional funding led by venture capital firm FirstMark Capital.
Dell saw privately held Boomi as a possible acquisition after rival IBM bought out Cast Iron Systems earlier this year.
The Texas-based Dell said the purchase of Boomi will allow it to "help businesses reap the full value of cloud computing," where software and services are hosted on the Internet.
Boomi operates a platform that allows transfers of data between cloud-based applications and "on-premise" computer networks.
Boomi "manages millions of transactions a month and has completed tens of thousands of cloud integrations for hundreds of customers globally across a wide spectrum of industries," said Dell.
The takeover is Dell's latest bid to "build a technology portfolio for growing businesses seeking the benefits" of cloud-computing, it said.
"Twenty-six years ago we helped accelerate the move to client-server computing; today we'll help drive a similar transformation with customers turning to the cloud to drive costs down and innovation up," said Steve Felice, president of Dell's consumer, small and medium business division.
Dell has been searching to buy a viable cloud-computing, and had recently lost a bidding war with larger rival HP over the high-end storage service 3PAR. CEO Michael Dell said at an industry event in Hong Kong that the company planned to announce a deal on Tuesday, prompting market speculation on potential targets.
Shares of Dell rose 9 cents to close at $14.50 on Tuesday.
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