VMware CEO Patrick P. Gelsinger and parent company DellEMC founder Michael Dell at its 2017 VMWorld conference image credit : VMware

Cloud software giant VMware has just announced its intent to acquire Boston based cloud service management startup CloudHealth in what would mark its 33rd acquisition and its 4th this year as the company aims to expand its services in the cloud software market.

An official price has not been disclosed yet but Reuters reports VMware would pay $500 million for the 6 year old startup which has raised over $80 million in funding.

VMware made its intent known during the keynote address of its annual VMWorld conference where it also made announcement of a new integration with AWS amid other  hybrid cloud focused changes.

“Multi-cloud usage while beneficial to business creates a unique set of operational problems.” said Raghu Raghuram, chief operating officer, products and cloud services, VMware. “With the addition of CloudHealth Technologies we are delivering a consistent and actionable view into cost and resource management, security and performance for applications across multiple clouds.”

“As organizations scale their cloud environments and expand the use cases, they struggle with how to leverage a multi-cloud model to drive business transformation,” added Tom Axbey, president and chief executive officer, CloudHealth Technologies. “We are thrilled to combine with VMware to address this challenge by delivering a suite of multi-cloud management services that accelerate digital transformation.”

This acquisition is expected to close by Q3 next year and is subject to customary closing conditions and regulatory approvals.

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