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As cloud computing becomes a stronger force in the industry, IBM wants to expand its services so that is why it acquired database Web hosting company SoftLayer Technologies and created a new division for clients interested in cloud services.

While financial terms were not immediately available, the deal for the Dallas-based company is worth around $2 billion, said one person, said a person familiar with the matter.

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SoftLayer, founded in 2005, serves about 21,000 customers from 13 data centers it operates in the U.S., Europe and Asia. The company said it is the world’s largest privately owned web-hosting company.

In cloud computing, companies rent computing power and technology instead of buying it upfront and managing it themselves at greater initial expense.

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For IBM’s part, SoftLayer is helping the company build out its private and public cloud-based services for its clients. IBM said it expected to gain $7 billion annually in revenue from cloud services by the end of 2015.

The new division called Cloud Services will combine SoftLayer and IBM’s existing offerings into a global platform.

IBM said it expected the deal to close in the third quarter.

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