Editor’s Note: Noro-Moseley’s Fund VII is close to $120 million and not $53 million as previously reported. We regret the error.
@jacquichew Thanks for the note. Our new fund size is close to 120 MM btw. Appreciate the shout out.
— ataetle (@ataetle) May 27, 2015
EMC announced that it will acquire Noro-Moseley Partners portfolio company Virtustream for $1.2 billion in an all cash transaction. Since its inception in 2009, the cloud management company has raised almost $130 million from investors such as SAP, Intel Capital and Questmark Capital.
Atlanta-based Noro-Moseley participated in the company’s Series A and B rounds. It had also invested in Adjoined Technologies which was co-founded by Virtustream CEO Rodney Rogers and CTO Kevin Reid and that was acquired by Kanbay International, Inc. in 2006 for $165 million.
In an email, Virtustream board of director Alan J. Taetle, who led Noro-Moseley’s investment in the company had this to say:
Backed a great team for the second time and they executed flawlessly.
Virtustream is headquartered in Bethesda, Maryland with offices in San Francisco and Atlanta. The company provides cloud management software that enables enterprises worldwide to migrate, run and manage mission-critical applications in the cloud, including SAP. Virtustream customers include The Coca-Cola Company, Domino Sugar, Heinz, Hess Corporation, Kawasaki, Lexmark and Scotts Miracle-Gro.
This latest acquisition by EMC is part of its overall cloud strategy and effort to catch up with the likes of Microsoft and Amazon. Virtustream will form EMC’s new managed cloud services businesses.
“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,” said EMC chairman and CEO Joe Tucci in a statement. “With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer.”
Noro-Moseley was founded in 1983 and focuses its investments in the information technology and healthcare verticals. Notable exits by portfolio companies include Vocalocity acquired by Vonage Holdings in 2013, SecureWorks acquired by Dell in 2011 and Motricity went public in 2010. The firm recently announced a $52 million seventh fund.