Updated: The cloud consolidation continues. rPath, the Raleigh, North Carolina-based company that bills itself as “the enterprise PaaS company,” is rumored to be on the verge of getting acquired, multiple sources tell GigaOM. Business analytics giant SAS Institute is the company that is being linked to rPath. The price is being pegged at below $100 million.
There have been persistent rumors of rPath being for sale, according to cloud industry insiders. The company has had some recent braindrain and also has been perceived as a company that was ahead of the curve. It had raised $32.5 million in four rounds of funding. The company was started by former Red Hat employees and has seen some management turnover that had left the company on thin ice. However, it refocused its operations to get some growth. In a recent news release, rPath CEO Michael Torto boasted:
The company closed the first half of 2012 with 174 percent bookings growth over the same period last year. The company points to heightened demand for “enterprise PaaS” and active reseller relationships as the source of growth. “Over the last four quarters, we’ve seen a very positive shift in the market for cloud automation.”
In other words, this was as good a time for the investors to encourage the sale of the company. Both rPath and SAS have not responded to our queries and we will update the post as we get more information.
Update: On Friday, November 30, SAS said it was acquiring the assets of Rpath. Terms were not disclosed. In a statement, SAS CTO Keith Collins said:
“By acquiring rPath’s key technology and industry knowledge, we will expand our commitment to the virtual applications and appliances space on a global enterprise level. In addition, we will further enhance our ability to build and deliver SAS solutions, such as SAS High Performance Analytics, in a cloud environment. This is a great fit for SAS and we’re excited to have employees of rPath join our team.”
4 thoughts on “Cloud app services company rPath acquired by SAS”
good that its happening prior to 2013, congrats to rP
Vinod or someone else, what is the reference to “prior to 2013”?
It’s not an actual “whole company” acquisition. For information on the deal, please read the announcement here: http://www.sas.com/news/preleases/rpath-asset-acquisition.html
“We’re not acquiring the entire company,” Heath added. “They will remain independently owned and their specific plans…are not available to us.”
RPath CEO Mike Torto couldn’t immediately be reached for comment. The company’s technology tenables corporate information technology departments to more easily access and manage their software — regardless of whether that software is in a physical, virtual or cloud environment.
Read more here: http://blogs.newsobserver.com/business/rpath-winding-down-sells-technology#storylink=cpy