EMC To Buy Cloud-software Company Virtustream In a $1.2 Billion Cash Deal

EMC Corp. announced on Tuesday a deal to acquire privately-held cloud software and services company Virtustream in a cash deal valued at $1.2 billion. EMC said the deal, which is expected to close in the third quarter, will have no material impact to financial results in 2015, but will add to revenue and earnings in 2016. Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry's fastest-growing and most important sectors," said EMC Chief Executive Joe Tucci. "With Virtustream in place, EMC will be uniquely positioned as a single source for our customers' entire hybrid cloud infrastructure and services needs." EMC's stock, which was still inactive in premarket trade, has lost 9.8% year to date, while the S&P 500 had gained 3.3%.