CA hopes to fly high with latest acquisition
CA hopes to fly high with latest acquisition
Computer Associates has signed a definitive agreement to acquire network service management software provider Concord for around $330 million, or $17 a share. Additionally, CA is to assume approximately $20 million in net debt from Concord for a total purchase price of $350 million (all figures US$).
Once the deal has gone through the usual regulatory processes and has been approved by Concord's shareholders, CA intends to integrate Concord's eHealth technology, which provides network performance management and predictive capacity planning to telecommunications companies, service providers and enterprises, with its own Unicenter products.
Concord's service management offering provides complete management of leading-edge technologies, including VoIP and wireless mobile networks, giving CA further traction in the network services market.
CA president and CEO John Swainson commented: “This strategic combination significantly advances CA's position in the high-growth network and systems management marketplace.”
“This strategic acquisition is expected to be a big win for Concord's customers,” said Concord chairman, president and CEO Jack Blaeser. “The integration of these two companies' people and technology will create a powerful and unique resource to address the evolving challenges of organisations that depend on the reliable, efficient operation of highly complex IT environments.”
Concord's operations will be integrated into CA's newly created Enterprise Systems Management Business Unit, headed by senior vice president and general manager Alan Nugent. It is anticipated that the bulk of Concord's 640 employees will remain with CA after the completion of the transaction.
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