Austin's Pivot3 brings in $55 million in financing

Posted March 16th, 2016

Pivot3 is ready for another wave of growth with a new round of financing.

The Austin-based company said it has received $55 million in equity and bank financing, which will be used to launch new products.

Founded in 2002, Pivot3 develops server and storage virtualization software and hardware. The company was started in Houston by former Compaq Computer Corp. engineers and moved its headquarters to Austin five years ago.

Pivot3 has been in expansion mode over the past 18 months. Last year, the company raised $45 million in venture capital to make a major sales and marketing push.

In January, Pivot3 acquired NexGen of Boulder, Colo., to expand its technology for managing data centers. The deal involved a stock combination of the two private companies.

Pivot3 now has 2,000 customers worldwide including seven federal agencies, Federal Express and Verizon.

The new funding includes equity and bank financing, with  Argonaut Private Equity and S3 Ventures providing the equity, and Square 1 Bank providing the bank financing.

Pivot3 has raised a total of $185 million in financing.

The company combines virtual computing, networking and data storage to allow customers to manage large amounts of information more reliably than traditional products, and at a lower price.

"Companies today need a dynamic, agile and flexible IT infrastructure that can provide them with a competitive advantage as well as significantly lower total cost of ownership," Pivot3 CEO Ron Nash said. "Pivot3 is tackling this challenge head on."

The company competes with industry giants including EMC, IBM and Hewlett-Packard as well as newer players such as San Jose, Calif-based Nutanix. 

Pivot3 has about 215 employees and is hiring sales, marketing and development.

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