Mergers and acquisitions in October

The long-rumoured amalgamation of the UK’s two major cable broadband providers, NTL and TeleWest Global, was finally agreed as NTL announced a $6 billion deal to acquire its rival. M&A activity, elsewhere though, was dominated by big players making small ‘infilling’ deals.

That was the case at two of the world’s largest software companies, Symantec and Computer Associates (CA), where both made tactical acquisitions to strengthen their compliance offerings.

Symantec swooped on directory and access management vendor BindView Development, paying $209 million, and said it would add the acquisition to its policy compliance and vulnerability management portfolio. BindView’s agent-less access control technology is particularly suited to businesses that have a large number of branch offices, where installing updates and patches can be a logistical nightmare.

CA’s acquisition of iLumin Software, which provides enterprise message management and archiving software, will sit within its BrightStor storage management software, but will address corporate compliance requirements for retaining email. In email archiving, CA has its eye on a market Gartner expects will grow at a compound annual rate of 58% over the next five years to be worth some $885 million in 2010.

Elsewhere, IT project management technology vendors were the target, with Legadero Software and Wind2 Software snapped up for undisclosed fees.

Software development platform maker Borland made its long-anticipated move into the IT project arena with its buy-out of Legadero. Analysts, such as Bola Rotibi at Ovum, thought the move made a lot of sense: “Ever since Borland announced its Software Delivery Optimisation strategy and delivered the first role-based solutions to realise that vision the company has been exposed to some noticeable gaps in its offering.”

It might be a tiny – with just 20 employees – but Legadero’s Tempo suite of tools for project prioritisation, budgeting, resource allocations and other aspects of “IT governance” will significantly strengthen Borland’s SDO story, enabling it to target more senior IT management over and above its traditional audience of development chiefs.

With less of a specific focus on IT, project resource management software and services vendor Deltek, now run by former PeopleSoft CFO and co-president Kevin Parker, was also in the mood to expand its footprint. In its case, it moved on one of its smaller rivals Wind2. Wind2’s Financial Management System is used by 3,000 project-focused professional services firms and will swell Deltek’s customer base to 11,000.

Mergers and acquisitions in October
Acquirer   Activity   HQ   Target   Activity   HQ   Price  
BEA Systems Integration &process mgmt s/w US ConnecTerra RFID middleware US n/a
BEA Systems Integration &process mgmt s/w US M7 Java s/w development tools US n/a
Borland Software Application development s/w US Legadero Software IT project mgmt s/w US n/a
Bull Access management s/w France Enatel Access security s/w France n/a
Business Objects Business intelligence s/w France Infommersion Data visualization s/w US $40.0m
CACI IT services US Tech Computer Office Social service mgmt s/w UK n/a
Cisco Systems Networking products US Nemo Systems Network memory technology US $12.5m
Claranet Group Internet service provider UK Artful Managed hosting svcs France n/a
Computer Associates Intl Systems mgmt &security s/w US iLumin Software Message mgmt &archiving s/w US n/a
Comverse Technology Telecomms s/w US CSG Systems’ GSS div Billing s/w US $251.0m
Deltek Systems Project resource mgmt s/w US Wind2 Software Project management s/w US n/a
Ebay Online auctions US Verisigns payment gateway unit Payment processing US $370.0m
Embarcadero Technologies Data mgmt s/w US Ambeo Database audit/monitoring s/w US $6.0m
Exact Software Business applications s/w Holland Vanguard Solutions Group Analytic applications s/w US $5.0m
Experian Credit information svcs UK Prediction Analytics Retail perf modelling svcs US n/a
General Electric Healthcare Healthcare IT s/w &services US IDX Systems Healthcare mgmt systems US $1.2bn
Hewlett-Packard Systems, s/w &IT services US RLX Technologies Blade server mgmt s/w US n/a
iSoft Group Healthcare s/w UK Novasoft Sanidad Healthcare applications s/w Spain E12.0m
Logicalis Group IT integration UK TBC IBM systems integrator UK n/a
Netstore Managed IT services UK Intercea Managed IT services UK $21.3m
NTL Cable broadband provider UK TeleWest Global Cable broadband provider US $6.0bn
Oracle Database &appln dev s/w US Innobase Open source database s/w Finland n/a
Symantec Security &storage mgmt s/w US BindView Development Security compliance s/w US $209m t25
Torex Retail Retail management s/w UK Systech Retail Systems Retail management s/w Canada Can$38.5m
Verisign Infrastructure svcs US Moreover Technologies Web content aggregation svcs US $30.0m

Avatar photo

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...

Related Topics