VC-backed Pivotal acquires mobile strategy platform Xtreme Labs

U.S. web-focused software provider Pivotal has acquired Toronto-based Xtreme Labs, a company focused on accelerating mobile software development for enterprise customers. The all-cash acquisition was not disclosed, however, All Things Digital reports the price tag as totaling US$65 million. Xtreme Labs, which was founded in 2007 by Amar Varma and Sundeep Madra, was backed by US$20 million in angel investment in 2012. The San Mateo, Calif.-based Pivotal earlier this year received US$105 million in funding from General Electric.

PRESS RELEASE

Pivotal Acquires Xtreme Labs

Pivotal Expands Its Modern Software Development Services to Accelerate Mobile Application Development for the Enterprise

Summary
Pivotal has acquired Toronto-based Xtreme Labs, a privately-held, leading provider of mobile strategy and product development to help accelerate mobile software development for enterprise customers.
Xtreme Labs, combined with Pivotal’s application and data infrastructure software, as well as Pivotal’s next-generation Enterprise PaaS product, will help deliver the industry’s most comprehensive product offering for customers who are looking to quickly embrace and leverage mobile to transform their enterprise.
Xtreme Labs builds on the formidable modern software development resources at Pivotal to create a team of 500 employees dedicated to agile application development.
Xtreme Labs enhances Pivotal’s powerful next-generation portfolio of products and services by bringing a deep expertise and knowledge in mobile strategy and development for the world’s most influential brands.

The acquisition is an all-cash transaction. Other terms of the deal were not disclosed.

SAN FRANCISCO, CA, October 2, 2013 — Pivotal today announced that it has acquired Toronto-based Xtreme Labs, a privately-held, leading mobile strategy and product development firm. The acquisition is an all-cash transaction. Other terms of the deal were not disclosed.

Xtreme Labs builds on the formidable modern software development resources at Pivotal to create a team of 500 employees dedicated to agile mobile application development. Through its highly regarded software development unit, Pivotal Labs, Pivotal has been a leader in agile development for more than two decades, building highly reliable, scalable software for innovative industry leaders and emerging companies across a number of industries. Xtreme Labs’ relentless focus on mobile complements the cloud application development and web expertise capabilities at Pivotal Labs. Together, they map to Pivotal’s product portfolio to create value and help customers modernize and transform in each of the following areas: Big & Fast Data, Application Development, and Analytics. All of Pivotal’s technologies are being thoughtfully converged into “A New Platform for a New Era” with a revolutionary new Enterprise Platform-as-a-Service called Pivotal One. This platform enables a new class of applications that leverage big and fast data, while being developed and deployed in a cloud-independent environment.

Founded in 2007, Xtreme Labs is a full-service mobile strategy and product development firm that leverages modern engineering practices to build rich and engaging mobile experiences across all platforms. The company leverages a unique process – Discovery, Product & Performance – to solve the most challenging problems in mobile for its customers. Through ongoing innovation, Xtreme Labs takes pride in helping its customers identify new revenue opportunities and demonstrating the value of mobile. The company develops mobile experiences across diverse industries including banking, media, retail, enterprise and health care.

Today’s acquisition further aligns with Pivotal’s strategy to capitalize on the nexus of converging forces in the industry. In a recent Gartner report , the firm estimates that by 2016, there will be more than 300 billion app downloads every year. And the major vendors of monolithic business suites will struggle to develop mobile apps that are usable, affordable and secure. The report added, “The most important reality of the Nexus of Forces [cloud, mobility, social, and information] is that it is not a single force, but rather the complex interaction and mutual reinforcement of four separate but converging forces. The nexus is already changing business fundamentals and creating new business models.”

Pivotal and Xtreme Labs Executive Quotes

Paul Maritz, CEO, Pivotal

“Every enterprise today has to exploit the opportunities offered by mobile. This requires new ways of thinking and working, and the need to get it right the first time and every time. We’re thrilled to bring next-generation mobile capabilities to our customers and welcome Xtreme Labs to the Pivotal family.”

Amar Varma, co-founder, Xtreme Labs

“We share Pivotal’s belief that the convergence of mobile, social, big data, and cloud is driving extraordinary change in the enterprise. It is something we see every day with our customers. By joining forces with Pivotal, we can bring our strong heritage, that of helping the world’s most important companies succeed in mobile, to help an even greater number of companies to win in a new era.”

Additional Resources

Read the open letter from Xtreme Labs founders on joining Pivotal at http://ow.ly/pqo43
Pivotal – www.gopivotal.com
Pivotal Labs – www.pivotallabs.com
Xtreme Labs – www.xtremelabs.com

About Pivotal
Pivotal, committed to open source and open standards, is a leading provider of application and data infrastructure software, agile development services, and data science consulting. Pivotal’s revolutionary Enterprise PaaS product, powered by Cloud Foundry, will be available in Q4 2013. Learn more at www.gopivotal.com. Follow Pivotal on Twitter @gopivotal and LinkedIn, G+.

© 2013 GoPivotal, Inc.

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