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California firm buys Toronto mobile developer Xtreme Labs

Xtreme Labs, one of Canada’s best-known mobile developers, has been bought by a California-based software firm.

Ryan Remiorz/The Canadian Press

Xtreme Labs, one of Canada's best-known mobile developers, has been bought by a California-based software firm.

Pivotal, a cloud-based software firm, will buy the 350-employee, Toronto-based Xtreme Labs in a bid to expand its footprint in the mobile space.

According to Xtreme Labs, all the company's jobs will stay in Canada, and the mobile development shop plans to go on a hiring spree following the completion of the deal.

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Following the acquisition, Pivotal will have a 500-person team working on application development, the company said.

Pivotal is backed by industry heavyweights Vmware and EMC. Xtreme Labs is the company's first acquisition.

Since its founding in 2007, Xtreme Labs has worked for a number of big-name clients, including Facebook, Twitter and MTV. The company has also done work for The Globe and Mail.

"The convergence of mobile, social, big data, and cloud is driving extraordinary change in the enterprise." Xtreme Labs co-founders Amar Varma and Sundeep Madra said in a statement. "To help customers win in this new era, Pivotal is enabling the creation of modern software applications that leverage big and fast data – on a single, cloud independent platform."

Xtreme Labs did not disclose the purchase price to The Globe and Mail. Citing sources close to the deal, All Things Digital reported the price at $65-million (U.S.).

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