Dell purchases US cloud computing firm Boomi

DELL will buy US cloud-computing services company Boomi to shore up its ability to provide software over computer networks.

The world’s second-largest PC maker did not disclose terms of the deal for Boomi, which counts among its clients and helps integrate so-called cloud-based applications and smooth data transfers between programs.

Boomi raised $4m (£2.5m) in 2008 in an initial round of institutional funding led by venture capital firm FirstMark Capital. The company is based in Berwyn, Pennsylvania, and was founded in 2000.

Privately held Boomi was mentioned as a potential acquisition target after Dell rival IBM bought Cast Iron Systems earlier this year.

Dell has been on the acquisition trail, but lost out recently in a bidding battle with larger rival Hewlett-Packard for high-end storage maker 3PAR. Chief executive officer Michael Dell had said at an industry event in Hong Kong that the company would announce a cloud-computing acquisition on Tuesday, spurring a round of market speculation on potential targets.