Last Tuesday, International Business Machines Corp. (IBM) stated the acquisition of SoftLayer Technologies, a database Web hosting firm. This will direct them in the creation of a new division for customers who are interested in cloud services.
The financial terms of the deals were left unsaid; however, Reuters reported last March that IBM offered SoftLayer more than US$2 billion for the deal.
SoftLayer Technologies is based in Dallas and was established in 2005. It is also the world's biggest private website hosting service. SoftLayer is a provider of cloud infrastructure to its clients that are mainly from small to medium scale enterprises.
The reason behind the said deal offered to SoftLayer was to help IBM generate both private and public cloud services for clients. IBM is also expected to generate more than US$7 billion yearly revenue from this kind of services by the end of 2015.
IBM has created a new division combining current services with SoftLayer and bringing it to a global platform. The deal is expected to take place by end of the third quarter this year.
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