EMC Corp. to acquire Virtustream in 'game changer'

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Hopkinton-based EMC Corp. is acquiring Virtustream, which will form EMC’s new managed cloud services business, EMC said Tuesday.

The deal is part of EMC’s strategy to help its customers move all their applications to cloud-based IT environments. Bethesda, Md.-based Virtustream is a privately held company whose products will be delivered directly to customers through EMC’s global partner ecosystem, the EMC statement said.

The cash transaction, valued at about $1.2 billion, is expected to close in the third quarter of 2015, the company said.

Virtustream will operate as a separate EMC business, with its CEO, Rodney Rogers, reporting to Joe Tucci, EMC Chairman and CEO.

“Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry’s fastest-growing and most important sectors. … We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer,” Tucci said in the statement.

The statement said EMC currently operates the Federation Enterprise Hybrid Cloud Solution, an on-premises private cloud offering that provides on-ramps to public cloud services such as VMware vCloud Air. Virtustream brings to the EMC portfolio a managed cloud software and services capability, whether on- or off-premises, which EMC also intends to incorporate into the Federation Enterprise Hybrid Cloud Solution.

“With the addition of Virtustream, EMC will enable customers to move their entire application portfolio into a cloud environment,” EMC said.