Blog Post

Pivotal makes its first acquisition: Xtreme Labs

Pivotal is buying Xtreme Labs, a Toronto company specializing in mobile application development for retail, banking, media and other industries.

San Francisco-based Pivotal, which spun out of EMC(s emc) and VMware(S vmw) last year, is building out what it calls an infrastructure-independent “operating system” for the cloud. The idea is that companies would use it to build and run applications that take advantage of the data explosion expected to come with the internet of things. Towards that end, acquiring more mobile expertise makes sense.

According to its website, Xtreme Labs works with customers to determine product priorities, then to build the product, and then works with the companies post roll-out to gather feedback and add features. It claims big customers including Facebook(s fb), CBS(s cbs), Twitter,, Blackberry(s bby), and Mercedes Benz and others.

In a prepared statement, Pivotal CEO Paul Maritz said:

“Every enterprise today has to exploit the opportunities offered by mobile. This requires new ways of thinking and working, and the need to get it right the first time and every time.”

Terms of the all-cash deal were not disclosed, although AllThingsD valued it at $65 million.