CA to Acquire NetQoS, Inc. in $200 Million All-Cash Transaction
Deal Will Help Enterprise IT Organizations and Service Providers Optimize Business and IT Service Assurance, Delivery, and Quality of Experience
ISLANDIA, N.Y. and AUSTIN, Texas. – CA, Inc. (NASDAQ:CA), the world’s leading independent IT management software company, today announced that it has signed a definitive agreement to acquire privately-held NetQoS® Inc., a leading provider of network performance management and service delivery solutions, for $200 million.
“CA offers the industry’s strongest and most complete service assurance and delivery portfolio,” said Ajei Gopal, executive vice president of CA’s Products and Technology Group. “With the addition of the NetQoS network flow monitoring, unified communications management, and response time analytic network solutions, CA will further strengthen its ability to help enterprise IT organizations and service providers deliver reliable, flexible and cost-effective IT and business services.”
“NetQoS customers and partners will benefit from CA’s extraordinary development capabilities, outstanding sales force, and global customer support infrastructure,” said Joel Trammell, chief executive officer, NetQoS. “NetQoS’ solutions will strengthen CA’s ability to deliver to its customers service-centric insight into network, systems and application performance—with no visibility gaps.”
CA is a recognized leader in the management of networks, systems, application performance, and cloud computing.* NetQoS’ industry-leading solutions will extend CA’s capabilities in each of these areas:
Network and Systems Management
The combination of CA eHealth® Network Performance Manager, CA Spectrum® Infrastructure Manager and the NetQoS Performance Center will give CIOs and network engineers and operations managers better visibility and control of critical services in their physical and virtual network and systems environments. This will enable customers to flexibly and efficiently deliver high-quality services such as unified communications.
Application Performance Management
By linking transaction views to the infrastructure, CA Wily Application Performance Management and the NetQoS Performance Center will enable a new level of quality of experience, in which the infrastructure is application-aware. This 360-degree view of applications will provide customers both an outside-in and inside-out perspective of their business and IT services, something no other single vendor can provide.
CA’s acquisition of NetQoS builds on the assets CA acquired from Cassatt earlier this year, as well as CA’s organically developed CA Spectrum® Automation Manager for dynamic performance-based automation of physical, virtual and cloud computing environments. As enterprises and service providers become increasingly reliant on the shared infrastructure of private and public computing clouds, CA and NetQoS will provide a robust level of network and systems traffic management that will be critical to successfully delivering cloud-based services.
Founded ten years ago, NetQoS has more than 1,000 active customers worldwide, including many in the Fortune 100. With annual revenue of $56 million in 2008, NetQoS’ revenues have experienced a 58 percent CAGR over the past five fiscal years.
At the close of the transaction, Joel Trammell will join CA as senior vice president and general manager, and Dr. Cathy Fulton, NetQoS chief technology officer and executive vice president of Products, will join CA as senior vice president, Software Engineering. Initially, NetQoS will operate as an independent entity within CA’s Infrastructure Management and Automation business unit and will report to Ajei Gopal. It is anticipated that a majority of NetQoS’ 250 employees will remain with CA.
The all-cash transaction is expected to be slightly dilutive in fiscal 2010 on CA’s non-GAAP and GAAP earnings per share. The acquisition is expected to be completed by the end of the calendar year, pending regulatory approvals.
* Bloor Research, “Network and Voice Management Software” by Peter Williams and Carl Potter, February 2008.
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