Ford Motor on Thursday said it would invest $182.2 million in Pivotal, a cloud-based software platform company, as part of its plan to be a leader in connected smart cars and mobile apps related to driving.
“Our investment in Pivotal will help strengthen our ability to deliver these customer experiences at the speed of Silicon Valley, including continually expanding FordPass — our digital, physical, and personal mobility experience platform,” Ford’s executive Mark Fields said in a press release.
Ford, in partnership with Pivotal, last month launched FordPass to offer new customer services, such as remote access to vehicles through a smartphone app, and mobility solutions, such as parking and car sharing.
Ford will use its investment to accelerate the incorporation of Pivotal’s advanced software development methodologies and technology across the manufacturer’s operations, and will put Pivotal’s next-generation cloud platform and analytics capabilities to use on the company’s new mobility projects.
The investment complements Ford’s existing embedded software capability that supports its EcoBoost engines, SYNC 3 connectivity system, and driver-assist technologies like active park assist, the company said.
Ford also said that its chief information officer Marcy Klevorn would join Pivotal’s board.
Ford’s investment in Pivotal is part of a $253 million round that includes an initial contribution from Microsoft and increases Pivotal’s valuation to $2.8 billion, according to The Wall Street Journal. GE, EMC, and VMware also participated in the latest round, taking total funding in Pivotal to about $358 million. Pivotal spun out of EMC and VMware in 2013.
The three-year-old firm’s CEO Rob Mee told the WSJ that the closely-held company would eventually conduct an initial public offering but has no date in mind. First quarter revenue was $86 million, up 56% from last year, and the company claims annualized recurring revenue as of March 31 of $115 million.