IBM has signed a definitive agreement to acquire SoftLayer Technologies,a privately held cloud computing infrastructure provider. Financial terms of the transaction were not disclosed.

IBM is aslo forming a new Cloud Services division. Following the close of the acquisition of SoftLayer, which is expected in 3Q 2013, this new division will combine SoftLayer with IBM SmartCloud into a global platform. The division will report to Erich Clementi, Senior Vice President, IBM Global Technology Services.

Headquartered in Dallas, Texas, SoftLayer serves approximately 21,000 customers with a global cloud infrastructure platform spanning 13 data centers in the U.S., Asia and Europe.

IBM says it expects to reach $7 billion annually in cloud revenue by the end of 2015.