EMC buys SourceLabs, operator of open source site Swik.net

SourceLabs, an open source software support startup based in Seattle, has been sold to storage giant EMC for an undisclosed price, according to a source familiar with the deal.

The evidence suggests it is true: The source said that some of the team has started working at EMC's Bellevue offices, where I was able to leave a voice mail for SourceLabs chief architect Will Pugh. Chief Executive Byron Sebastian had not yet set up his voice mail at the Bellevue location, according to a receptionist. He could not be reached on his cell phone Friday.

SourceLabs, which operates the open source community Swik.net, raised a $7 million venture round from Ignition Partners, Madrona Venture Group and Index Ventures in 2006.  It marks the second major acquisition by Hopkinton, Mass.-based EMC of a Seattle startup in the past 12 months, following its purchase of Pi Corp. last year.

Back in November, we heard that the company was encountering rough patches in part because some of it clients included large financial institutions which had been hurt during the economic collapse. (The company's customer list at one time included Merrill Lynch, whose sale to Bank of America was completed today.)

In November, SourceLabs Chief Executive Byron Sebastian told TechFlash that the "economy is tough" and noted that customers were moving slower than they had in the past.

"It takes more time to get commitments," Sebastian said. "It makes it harder for us to plan."  He also said that Swik.net attracted about 1.1 million unique visitors each month, with SourceLabs self support offering for Linux and Java growing its visitor count by 400 percent during a six month period. That product is used to troubleshoot issues developers have with open source software like Linux, Xen, and Apache, he said.

Sebastian -- who previously worked at BEA Systems, Crossgain and Amazon.com -- founded SourceLabs in 2004.  An EMC spokesperson could not  immediately be reached for comment.

It will be interesting to see what plans EMC has for SourceLabs, including Swik.net.

UPDATE: Ignition's Brad Silverberg says that EMC purchased some of the assets of the company, with the majority of the employees moving over to EMC. The Swik.net community was not part of the asset sale, which he said continues.

Eric Engleman contributed to this report.