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VMware Buys SDN Startup PLUMGrid's Assets

VMware is grabbing the five-year-old company's intellectual property and employees.

Mitch Wagner

December 19, 2016

2 Min Read
VMware Buys SDN Startup PLUMGrid's Assets

Nine months after telling Light Reading that it wasn't up for sale, SDN startup PLUMgrid has sold its technology and IP, and employees "have joined a new team." The buyer: VMware.

PlumGrid Inc. announced the sale on its blog Monday, without naming the buyer. VMware confirmed in email that it's the company making the acquisition. The deal closed Friday, VMware says.

Neither company would comment on the price, or future of PLUMgrid's management team, or how PLUMgrid will fit into VMware's line.

We're told that VMware grabbed all of PLUMgrid's technology and most employees -- but not PLUMgrid CEO Larry Lang, who joined the company in 2015. (See PLUMgrid Appoints Larry Lang as CEO.)

Rumors were swirling in March that PLUMgrid was looking for a suitor, but Lang denied it to Light Reading. (See PLUMgrid CEO on M&A Rumors: Nope.)

"We're not really on the market," he said at the time. But he added, "We're a startup company. If someone came to the door with the right offer, we'd look at it."

Want to know more about the cloud? Visit Light Reading Enterprise Cloud.

Lang said at that time that the company had enough cash to get through the end of the year. So that was a close call for PLUMgrid.

I emailed Lang Monday morning: "Looks like you were on the market after all, eh?" I said. He replied: "Every debutant is happy to receive gentlemen callers. ;-)"

PLUMgrid was founded in 2011, backed by US Venture Partners, Hummer Winblad Venture Partners, Longworth Venture Partners, Qualcomm Ventures and Swisscom Ventures. It has received $45.91 million in three funding rounds, according to CrunchBase.

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— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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