CA Acquires NetQoS for $200m

$200 million in cash buys CA customers more options for monitoring and delivering applications and services within the enterprise.

By Larry Barrett | Posted Sep 14, 2009
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CA today announced it will shell out $200 million in cash to acquire privately held NetQoS, an Austin, Texas-based provider of network performance management and service delivery software.

CA officials said the purchase will give its customers more options for monitoring and delivering applications and services within the enterprise.

"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," Ajei Gopal, EVP of CA's products and technology group, said in a statement.

NetQoS CEO Joel Trammell will remain with CA as a senior vice president and general manager. Cathy Fulton, NetQoS' chief technology officer, will join CA as the senior vice president of software engineering.

Company officials say the bulk of NetQoS' 250 employees will remain with CA in some capacity. Founded in 1999, the company posted sales in excess of $56 million last year and supports more than 1,000 customers worldwide.

"NetQoS customers and partners will benefit from CA's extraordinary development capabilities, outstanding sales force and global customer support infrastructure," Trammell said in a statement. "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."

Last month, CA unveiled new management software to monitor and automate use of Amazon's Elastic Compute Cloud (EC2) and detailed its ongoing efforts to build focused, private cloud-computing platforms for businesses of all sizes.

CA shares inched up 22 cents, or just 1 percent, to $22.79 in early-afternoon trading Monday. The stock has made an impressive recovery in the past 10 months after tumbling to a 52-week low of $12.23 cents in October.

Earlier this year, CEO John Swainson, who helped orchestrate CA's recovery from several years of financial mismanagement and executive scandals, announced his plans to retire at year's end.

Islandia, N.Y.-based CA expects the NetQoS acquisition to be slightly dilutive to its fiscal 2010 GAAP and non-GAAP earnings per share. The deal is expected to close by the end of December.

Article courtesy of InternetNews.com

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