Tesora Bought by Stratoscale in Data Center Tech Consolidation

The deal-making and investment in New England’s enterprise IT sector continues.

Today, Stratoscale announced its acquisition of Cambridge, MA-based Tesora, a database-as-a-service provider.

Deal terms weren’t disclosed, but the purchase price probably wasn’t huge. Herzliya, Israel-based Stratoscale has raised about $70 million from investors including Battery Ventures, Bessemer Venture Partners, Cisco Investments, Intel Capital, and Qualcomm Ventures, according to a press release.

Tesora got started in 2010 under the name ParElastic. Its founders, Ken Rugg and Amrith Kumar, are veterans of Progress Software and Netezza, respectively.

Tesora had raised about $13.2 million from investors. Its backers include Rho Canada Ventures, General Catalyst Partners, Converge Venture Partners, Point Judith Capital, LaunchCapital, and Red Hat.

Tesora originally focused on trying to extend the capabilities of existing databases, making them more “elastic” and flexible. But in early 2014, it shifted gears to developing and supporting an enterprise version of OpenStack Trove, a system for managing database capacity in an on-demand way. The firm also changed monikers from ParElastic to Tesora, which means “treasure” in Italian.

Stratoscale’s software, meanwhile, serves as an operating system for data centers, enabling customers to quickly set up cloud computing environments on their existing hardware infrastructure and manage everything from a single software platform. Stratoscale said it snapped up Tesora to augment its database services for clients. In the press release announcing the acquisition, Stratoscale also said it’s now offering a relational database service compatible with Amazon Web Services.

“This acquisition is an important milestone in Stratoscale’s ability to help customers on their journey to the cloud,” said Ariel Maislos, Stratoscale’s CEO and founder, in a prepared statement. “Organizations want to consume database-as-a-service in a click of a button. Stratoscale is happy to bring Tesora onboard to make this a reality.”

Tesora will keep its Cambridge office, and 16 of its approximately 20 employees are staying on after the acquisition, a Stratoscale spokesperson told Xconomy. She declined to say who will not be joining Stratoscale.

Rugg, Tesora’s CEO, told Xconomy he will not be staying on. But he says the acquisition was a great deal for Tesora.

“Overall, I think it’s a great outcome for the team and our customers to join forces with Stratoscale,” Rugg said in an e-mail to Xconomy.

Before the deal, Stratoscale employed about 100 people, the spokesperson said. In addition to its headquarters, Stratoscale has offices in Haifa, Israel; Marlborough, MA; New York; and Sunnyvale, CA, according to its website.

The Tesora deal is the latest in a string of acquisitions and funding news involving New England enterprise IT companies. In January, Turbonomic raised $50 million from investors; SimpliVity was acquired by Hewlett Packard Enterprise for $650 million; and Kaminario snagged $75 million. And in December, Nasuni raised a $25 million funding round.

Xconomy’s Greg Huang contributed to this report.

Jeff Engel is a senior editor at Xconomy. Email: jengel@xconomy.com Follow @JeffEngelXcon

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