IBM to pay $1 billion for cloud services provider Vega solution partners

The U.S. technology giant will pay $2 billion for Vega solutions partner and technology services provider Vena solutions, the companies announced Monday.

Vena will be one of the three vendors IBM is pursuing to provide a cloud solution to a range of IBM cloud customers. 

Vena, based in Palo Alto, California, has developed a cloud-based platform that enables organizations to deploy applications on IBM hardware, along with software, cloud services and data center infrastructure. 

Vega is an open-source platform, meaning it’s not owned by IBM or a vendor. 

“The acquisition of Vena provides us with a significant level of flexibility in the development of our next generation cloud solutions and provides us a platform for building an integrated solution to accelerate innovation across our business,” IBM CEO Ginni Rometty said in a statement. 

The deal is the first time Vena has been acquired by a large tech company in the U.K., though it has a strong track record of acquisitions. 

In 2012, the British technology company snapped up Vena’s data center services business, bringing the company’s total customer base to over 1,200 companies. 

A decade later, Vena is now one of three cloud providers IBM is actively pursuing to deliver a cloud services solution.

The company has been working on a cloud service offering since the first quarter of 2017. 

IBM has been targeting cloud solutions to the automotive industry and energy storage and cloud computing.