Mergers and acquisitions

The pace of acquisition in the network management market is picking up, fuelled in part by the burgeoning interest in network services such as wireless communications and voice-over-Internet protocol (VoIP).

Systems management stalwart Computer Associates (CA) agreed a $300 million deal for network service management vendor Concord Communications. While Concord has been treading water of late, with a string of disappointing financial results, the acquisition gives CA a much-needed foothold in network fault and performance management. It also strengthens CA’s portfolio in the voice-over-IP (VoIP) and wireless networking markets.

The purchase will assist CA to compete more directly with technology giant Hewlett-Packard (HP), which has increasingly encroached on CA’s systems management revenues. HP’s OpenView systems and network management line has gained significant traction in the telecoms industry, and CA will look to the Concord deal to help it claw back market share. Concord had long suffered from limited routes to market, however, it will now have access to CA’s extensive channel of resellers and systems integration companies.

Further activity in the wireless market saw service management company Micromuse buy network performance monitoring software maker Quallaby for $33 million in cash. The acquisition fleshes out Micromuse’s range of business service management software, extending its capabilities in wireless and IP-based networks.

Elsewhere, there were signs of life in the thin-client market after years of relative dormancy. Private equity company Garnett and Helfrich Capital bought a controlling stake in thin-client specialist Wyse Technology for $35 million. And rival Neoware Systems spent e3 million on thin-client software maker Qualystem Technology. Qualystem specialises in software that streams Windows operating systems and applications to thin clients on a pay-per-use basis. Neoware recently bought TeleVideo‘s thin-client business and a Linux thin-client maker.

Key mergers and acquisitions in April
Acquirer   Activity   HQ   Target   Activity   HQ   Price  
Accenture Consultancy &IT services US Capgemini N Am(health practice) Healthcare industry IT services US $175m
Adobe Systems Document s/w US Macromedia Multimedia s/w dev tools US $3.4bn
Autonomy Unstructured data mgmt s/w US etalk Contact center monitoring s/w US $70m
Axon Group IT services UK Feanix SAP systems integration US $23.5m
BT Telecoms services UK CW Business Solutions IT services &connectivity s/w Spain €6m
Cegedim Healthcare data &IT svcs France Target Software Mobile pharma CRM s/w US n/a
Cisco Systems Networking products US Topspin Communications Infiniband switches US $250m
Claranet Internet service provider UK Via UK Internet service provider UK £7.3m
Cognizant Technology Offshore IT services US Fathom Solutions Telecoms/fin svcs IT consultancy US $19m
Computer Associates IntÕl Systems mgmt s/w US Concord Communications Network service mgmt s/w US $330m
Computer Associates IntÕl Systems mgmt s/w US InfoSecÕs ID mgmt s/w Identity mgmt s/w US n/a
Detica Group IT consultancy UK Extraprise UK CRM systems integrator UK £0.2m
Financial Objects Financial/banking software UK Wealth Management s/w Financial services s/w UK £5.6m
Francisco Partners Private equity firm US RedPrairie Supply chain execution s/w US n/a
Garnett &Helfrich Capital Private equity firm US Wyse Technology Thin client technologies US n/a
Ibas Data recovery services Norway Vogon International Data recovery/computer forensics UK Up to £9m
IntÕl Business Systems Business applications s/w Sweden TMS Publishing industry SCM s/w Australia €7.6m
Mediasurface Content management s/w UK Class-Act Content management s/w Holland €0.4m
Micromuse Network mgmt s/w UK Quallaby Network perf mgmt s/q US $33m
Neoware Systems Thin client technologies US Qualystem Technology Server-to-PC apps streaming s/w France €3m
Network Appliance Storage systems US Alacritus Software Virtual tape storage systems US $11m
Progress Software Appln dev &DBMS s/w US Apama Event-driven architecture s/w US $25m
Redstone Telecoms services UK Xpert Group Telephone, internet &VoIP s/w UK £25.5m
Satyam Computer Services Offshore IT services India Citisoft Investment mgmt sector consulting UK Up to $38.7m
Seagull Software Systems Legacy connectivity s/w US SofTouch Systems Mainframe applns integration s/w US n/a
Siemens Communications Comms systems US Myrio IP video and TV s/w &services US n/a
Telecom Italia Telecoms services Italy Liberty Surf Internet services provider France €266m
Telelogic Software development tools Sweden Popkin Software Appln modelling s/w US $45m
TietoEnator IT services Finland AttentiV Systems Financial services s/w UK £46.6m
WRQ Host access s/w US Attachmate Host access s/w US n/a

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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