CA Acquires NetQoS for $200m

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
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.

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