Pivotal buys elite mobile development shop Xtreme Labs

Pivotal has made its first acquisition, a Toronto-based mobile development shop called Xtreme Labs. Xtreme Labs works with customers in a variety of sectors, such as health care and media, and its biggest clients include Microsoft and Groupon.

San Francisco-based Pivotal did not disclose the final sum for the buy-up, but the company has no shortage of funds. It launched in April, but it is not a startup in the traditional sense. Pivotal is a spinout venture from EMC and VMware, and was endowed with over $100 million in funding from General Electric, among others.

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The company also recruited over 1,000 people from EMC, VMware, and Pivotal Labs, an elite San Francisco-based Web development firm that EMC acquired in March, 2012. Xtreme Labs is similar to Pivotal Labs, as both focus on agile software development.

Pivotal has remained fairly tight-lipped about his plans for the future, only speaking in broad terms about building a Linux equivalent for the cloud. Today’s acquisition will put Pivotal in a strong position to offer mobile and Web-based services to enterprise customers.

“We put Pivotal together because we have a strong belief that clouds will become the new computers — there will be many of them,” said Pivotal chief executive Paul Maritz, the former CEO of VMware. Don’t miss the full interview at the bottom.

AllThingsD is reporting that Xtreme Labs sold for $65 million in cash. It’s not yet clear whether the 300 employees will join Pivotal, but it’s likely, given that this was a talent acquisition.

Curious to learn more about Pivotal? I spoke with Maritz at our recent CloudBeat conference.

CloudBeat 2013 Paul Maritz, CEO Pivotal from VentureBeat on Vimeo.