Acquisitions

Pivotal Labs Purchased by EMC: ‘Same Pivotal, Increased Velocity’

screen shot 2012 03 19 at 9 33 06 am Pivotal Labs Purchased by EMC: Same Pivotal, Increased Velocity

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Last week, Om Malik broke the news that Pivotal Labs, which is based in San Francisco but has an outpost in Union Square, was in talks to be acquired by a major technology company. At the time, a source told Betabeat that Pivotal had been contemplating a sale for years. “The thinking behind this move, is to scale pivotal to Sapient levels of huge,” another source familiar with Pivotal told Betabeat.

Well, late Friday, GigaOm got the exclusive: EMC Corporation, a publicly-traded Fortune 500 company that helps IT departments “accelerate the journey to cloud computing,” bought Pivotal Labs, the agile development pioneer known for its work with Twitter. (Startups bring in their tech team, who get paired with staffers called “Pivots,” who teach them agile development while working together on their product.)

EMC, based in the Hopkinton, Massachusetts, manufactures and sells cloud and storage hardware. “It is not clear to me why EMC acquired Pivotal, though a reasonable guess would be to take agile development and Pivotal methodology into the enterprise,” wrote Mr. Malik.

What does this mean for Pivotal NYC, we asked one local techie? “Hire Pivots!” the source wrote back. (Jack Dorsey’s Square, which is 10 minutes away from Pivotal SF by foot, has been known to poach Pivots.

After the news broke, Pivotal CEO Rob Mee wrote on the company’s blog:

“Looks like the word is out. We’ll have more news on Tuesday but we want you to know we’re excited about the future. Same services, same Pivotal Tracker, same industry leading development practices – now paired with more resources than ever.”

We’ll update you on how the acquisition will affect life at 841 Broadway on Tuesday.

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