Interest in cloud continues

US investment in UK cloud-based systems has continued with the acquisition of the Pachube service by LogMeIn.

Following on from US-based Riverbed Technology’s acquisition of Zeus Technology, Pachube (which is pronounced ‘Patch Bay’) provides web-based services for connecting people and devices to a network of sensor-enabled devices which publish and share data. The programme connects users to the ‘Internet of Things’ network.

According to a statement the $15 million (£9.3 million) buy continues LogMeIn’s investment in ‘scalable’ connectivity and data sharing services and extends its products beyond computers, tablets and smartphones to other Internet-connectable units.

‘We believe the volume of devices coming online and the amount of data they will generate will dwarf the Internet as we know it today,’ says Michael Simon, chief executive officer of LogMeIn.

Simon says that London-headquartered Pachube has a good understanding of the technical challenges and possibilities that this ‘phenomenon’ presents.

He adds: ‘They’ve built a service that will changed the way people interact with their devices, their environment and each other.’

In a recent article published in the Wall Street Journal, executives of telecoms companies Verizon and Ericsson estimated that the number of internet connected devices will reach between 50 and 60 billion by the end of the decade, including products such as home appliances and automotive components.

The deal comes at the same time that US-based Riverbed secured the acquisition of Cambridgeshire cloud business Zeus Technology in a deal which could rise to $140 million.

Under the terms of the acquisition part of the $15 million consideration is performance and retention based. Additionally LogMeIn is expected to absorb $1 million per quarter in ongoing operating costs.

Pachube’s founder, Usman Haque, says that by combining the two businesses it will accelerate the growth of Pachube’s ‘global community’ and take it into new markets.

The deal also includes all other assets of Connected Environments.

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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