Canada’s OpenStack hosting company to be acquired by Canadian firm for $50M in cash and stock
BOSTON — OpenStack has signed a definitive agreement to acquire the Canadian startup Metering Compute, a company based in the US and based in Toronto, sources told CNET on Thursday.
The acquisition of Metering is expected to close in the first half of 2017, sources said.
The deal is expected in early 2018, sources added.
The Canadian startup was founded in 2012 by Kyle Lippman and Paul Burdick.
The company specializes in cloud-based cloud computing services for universities and academic institutions, and is widely used by institutions, government organizations, private firms, and others.
It offers cloud-native, scalable, and secure cloud computing solutions.
OpenStack’s co-founders, Babbage Technologies, and Metering, were part of a group led by former Microsoft executive Peter Brabeck-Letmathe that sold the company to Microsoft for $1.5 billion in 2012.
It went public in May of that year.
Babbage and Metered also were part in a company that was spun out of Microsoft, and Babbage’s shares have dropped since then.
Metering also provides a wide range of cloud-hosting solutions for enterprises and academic and research institutions.
The Metering deal is the first in a series of transactions by the two companies, and the two are expected to work closely together.
Metering’s product portfolio includes Cloud-Native Storage (CNS), which is a storage solution that runs on OpenStack; Metering Cloud, a storage service for OpenStack clusters; and Meters Cloud Storage, a cloud-computing service for Meters cloud infrastructure.
Openstack’s core product is the open source OpenStack operating system, which is used to power OpenStack nodes.
It has been deployed on more than 20 million nodes around the world.
“We are very excited to be partnering with Metering and are committed to their future growth,” said Brad Feldstein, founder and CEO of OpenStack.
“The Meters leadership and the OpenStack community is the key to unlocking significant value for the Openstack ecosystem and helping to provide the foundation for a new era of cloud computing.”
Metering CEO Paul Burden also noted that the Metering acquisition will benefit both companies and users.
“We’re incredibly proud to have been able to work with such a talented group of people in the Meters organization, which has built a reputation for innovation and innovation driven product innovation,” Burden said in a statement.
As part of the acquisition, Metering will also be acquiring Metering OpenStack Solutions, which includes the Meting Cloud Storage service.
In an interview with CNET, Burdack-Letmashe said he was excited to work for Metering.
“Metering is a fantastic company,” he said.
“They’ve built a strong brand around the cloud, and they’ve built it into their products, their infrastructure, and their customers.”
Meters was founded by Burdicks former co-founder, Kyle Lappas.
Burdack is currently CEO of Meters.
According to Burdocks LinkedIn profile, he is an “innovative and visionary CEO who has built an industry leader in cloud computing with a broad portfolio of innovative cloud-as-a-service solutions.”
Bidding closes at $50 million.
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