Acquisitions

Sources Say Pivotal Labs Has Been Contemplating a Sale For Years, Wants To Scale to ‘Sapient-Levels of Huge’

Pivotal NYC (via foursquare/connellmcgill)

Update: Pivotal Labs was acquired by EMC Corporation.

Late Monday night, Om Malik, GigaOm’s top (and only, as far as we know) Om, broke the news that Pivotal Labs was in talks to be acquired.  The San Francisco-based company, which Mr. Malik described as “one of the smartest Web consulting firms, known for its pioneering work in agile development,” he said, is “in talks to be acquired” by a large technology company.

Pivotal currently has offices in San Francisco, Boulder, and, of course, its beloved local outpost in Union Square, which frequently hosts Skillshare classes and, until recently TechStars NYC. Pivotal has an interesting business model. It helps technical teams from clients like Groupon, TaskRabbit, and even Best Buy and the Associated Press by working in tandem with Pivotal staffers. After a few months, they leave with progress on their product and training in agile development so they can do it all over again.

“The thinking behind this move,” a source familiar with the company told Betabeat, “is to scale pivotal to Sapient levels of huge,” adding that Pivotal SF was up for sale. (Sapient is a publicly-traded interactive services agency.)

Another source familiar with the company, who also requested anonymity, mentioned Sapient randomly as well. The source said he had talked to former VP of technology Ian McFarland about selling Pivotal numerous times “through the years.” Read More