Ericsson is to further invest in NodePrime to acquire 100% of its operations based in San Francisco.
NodePrime's platform is designed to support the command and control of the complete ecosystem of data centre components.
Integrated into the Ericsson Hyperscale Data centre System 8000, this software platform enables discovery, analysis and automated configuration of existing and new data centre hardware platforms.
This allows data centres to become hyperscale and adopt distributed infrastructure.
James Malachowski, co-founder and CEO of NodePrime, said: "Our vision from the start was to transform the infrastructure into a single entity where it's entirely possible to grasp the management of hyperscale data centre infrastructure through the collection of trillions of associated metrics inside one view.
"Now being part of Ericsson, together we are creating a power shift for enterprises to make decisions on their own terms and scale with precision at the speed at which businesses need to respond today."
Anders Lindblad, Vice President, Head of Business Unit Cloud & IP at Ericsson said: "We believe in innovation coming from the Silicon Valley area and will continue to increase our presence and distribution of such innovation."