The Bethesda-based cloud services company Virtustream is set to be acquired by IT giant EMC in a deal worth $1.2 billion, the companies said Tuesday.
The all-cash deal is expected to close during the next few months and marks one of the largest acquisitions in the Washington region this year.
Virtustream, whose customers include Coca-Cola, Heinz and Kawasaki, provides management software for businesses that use cloud computing. The company also owns and operates data centers, including one in Northern Virginia.
EMC has a long history of partnering with Virtustream, so the companies are already familiar with each other’s work, Howard Elias, EMC’s president and chief operating officer, said in an interview.
The deal allows EMC to offer a complete range of cloud infrastructure and services, which more clients are demanding, Elias said.
After the deal, Virtustream will become part of EMC’s new managed cloud services business.
The privately owned company had been mulling a public offering for a year, Virtustream’s chief executive, Rodney Rogers, told investors in a conference call Tuesday. The company received several offers before settling on EMC, he said.
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