IBM and EMC to Bid on SoftLayer

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EMC Corp and IBM are quietly discussing with web hosting company SoftLayer Technologies Inc to purchase the privately held database web hosting company. According to anonymous sources, the price could reach up to US$2 billion.

SoftLayer is an IT infrastructure specialist that has grown to become the world's largest privately held webhosting service. The company services 25,000 clients using cloud infrastructure for small and medium sized businesses.

The firm has engaged the services of Morgan Stanley and Credit Suisse to oversee the sale process. When sought for comment, SoftLayer, EMC, IBM, Credit Suisse and Morgan Stanley all declined to make any comment. The sale process was put into motion when one of SoftLayer's clients AT&T offered to enter into purchase discussions.

This has become a trend, with other web hosting companies becoming attractive assets to take over by technology and telecommunications firms that are seeking ways to improve performance and increase cost efficiency of cloud computing services.

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