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.

Comments

5 responses to “Novell acquires PlateSpin for $205M”

  1. Mister X Avatar
    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.

    1. Missy Avatar
      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.

  2. Mister X Avatar
    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.

  3. Missy Avatar
    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.

  4. Missy Avatar
    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.

Leave a Reply

Your email address will not be published. Required fields are marked *