Ravello Systems has entered into an agreement to be acquired by Oracle. The acquisition was announced in a blog post by Rami Tamir, CEO of Ravello Systems, on the company’s website.
Terms of the agreement were not disclosed, but industry estimates placed the deal at anywhere from $400 million to $500 million.
According to Tamir, the proposed transaction is subject to customary closing conditions, and upon closing of the transaction, the Ravello team will join the Oracle Public Cloud (OPC) organization and its products will become part of Oracle Cloud. “We believe this agreement will accelerate our ability to reach more customers, deliver more value, and enhance our technology at an accelerated pace,” said Tamir in the post.
In a short statement on the Oracle website, the company also confirmed, “On February 22, 2016, Oracle signed an agreement to acquire Ravello Systems. All Ravello employees will be joining Oracle as part of Oracle Public Cloud.”
On its website, Ravello, a VC-backed firm with offices in Palo Alto and Ra'anana, describes itself as a “leading nested virtualization software company” that was “founded by the same team that created the KVM hypervisor, with the vision of enabling enterprises to use leading public clouds as a true extension of their data center.”
According to Tamir, “Ravello will join in Oracle’s IaaS mission to allow customers to run any type of workload in the cloud, accelerating Oracle’s ability to help customers quickly and simply move complex applications to the cloud without costly and time-consuming application rewrites.” He also assured in his post that the company’s “top priority is ensuring an uninterrupted service and seamless experience for you and all of our customers and partners. Rest assured, Ravello’s service will continue ‘as is.’”