* Dell wants to boost cloud-computing capability
* No terms disclosed
* Dell shares barely changed
(Adds background on Boomi, updates shares)
LOS ANGELES, Nov 2 Dell Inc DELL.O will buy
U.S. cloud-computing services company Boomi to shore up its
ability to provide software over computer networks.
The world's No. 2 PC maker did not disclose terms of the
deal for Boomi, which counts Salesforce.com (CRM.N) among its
clients and helps integrate so-called cloud-based applications
and smooth data transfers between programs.
Boomi raised $4 million in 2008 in an initial round of
institutional funding led by venture capital firm FirstMark
Capital. The company is based in Berwyn, Pennsylvania, and was
founded in 2000.
Privately held Boomi was mentioned as a potential
acquisition target after Dell rival IBM (IBM.N) bought Cast
Iron Systems earlier this year. [ID:nN03206373]
Dell has been on the acquisition trail, but lost out
recently in a bidding battle with larger rival Hewlett-Packard
(HPQ.N) for high-end storage maker 3PAR. Chief Executive
Officer Michael Dell had said at an industry event in Hong Kong
that the company would announce a cloud-computing acquisition
on Tuesday, spurring a round of market speculation on potential
Shares of Rackspace Hosting Inc RAX.N climbed as much as
10 percent, but pared those gains to trade about 3.2 percent
higher at $26.16 around midday.
Cloud computing refers to technology that allows users to
access data, software and services over the Internet and
corporate networks, and has been touted as the next big trend
in the technology sector,
Shares of Dell were up 9 cents at $14.50.
(Reporting by Eddie Chan and Gabriel Madway, editing by