Novell acquires PlateSpin for $205M

Novel PlateSpin LogoPlateSpin, based in Toronto, has entered into a definitive agreement to be acquired by Novell for $205M. The company, which makes a suite of solutions for the server virtualization market, was founded (for the second time) in 2003. You see, PlateSpin is a restart.

PlateSpin1 was founded in 2000, raised $1.9M in 2002, and closed up shop in 2003. PlateSpin2 was restarted with new management in 2003, raised $3.5M from Toronto venture funds Covington Capital, Castle Hill Ventures, Skylon Capital, and Four Quarters, and another $7M in 2005 from Insight Venture Partners of New York.

Word is that PlateSpin2 had trailing revenue of $20M, and that Citrix, Microsoft, and Unisys were all vying for the prize. Congrats to PlateSpin and its backers on the Novell acquisition. We’re chalking this up as a win. While it doesn’t put PlateSpin on the road to VMware glory ($22B, P/S 16.84) it is a solid exit for all involved… especially the funds. I am guessing they cut a nice slice of pie as part of the restart.

  • Mister X

    Isn’t Platespin more about virtualization management. I don’t think they have any actual virtualization technology. Virtualization technology is a dime a dozen these days anyway. Problem is that there is very little good management software out there. Go and try virtualize a whole data center. Platespin’s software handles all that I think.

  • Mister X

    Isn’t Platespin more about virtualization management. I don’t think they have any actual virtualization technology. Virtualization technology is a dime a dozen these days anyway. Problem is that there is very little good management software out there. Go and try virtualize a whole data center. Platespin’s software handles all that I think.

  • Missy

    Our company looked into Platespin’s technology in the past and wasn’t overly impressed and passed on it. Perhaps Novell sees something there that we didn’t.

  • Missy

    Our company looked into Platespin’s technology in the past and wasn’t overly impressed and passed on it. Perhaps Novell sees something there that we didn’t.

  • Missy

    Our company looked into Platespin's technology in the past and wasn't overly impressed and passed on it. Perhaps Novell sees something there that we didn't.