In New Delhi: CA has signed an agreement to acquire Nimsoft,an IT performance and availability monitoring solutions provider for emerging enterprises and Managed Service Providers (MSPs).
The deal is valued at $350 million. According to the official release, the acquisition will extend CA's ability to meet the IT management needs of emerging enterprises and MSPs, both of which are playing leading roles in the growth of cloud computing.
CA estimates that emerging enterprises, which it categorizes as organizations with annual revenues from $300 million to $2 billion, will account for approximately a quarter of the software spending in CA's market space by 2013. By leveraging Nimsoft's market expertise and technology, CA expects to add new set of customers to its base, which historically has been comprised of large enterprises.
Nimsoft's technology and go-to-market approach also will leverage CA's presence in growing international markets-where the company expects cloud computing and hosted/managed services to play a central role in business development.
"With our planned acquisition of Nimsoft, CA will be equipped to capture several important growth market segments-including emerging enterprises, emerging national economies, and the MSPs who are providing these customers with IT management services via the cloud," Chris O'Malley, CA's executive vice president, Cloud Products and Solutions Business Line, said.
"Penetration of these markets will further expand our global leadership in IT management and complement our existing strength with large enterprise customers" O'Malley added.
The announcement follows CA's recent acquisitions of Cassatt, NetQoS and Oblicore and the planned acquisition of 3Tera.
"We're bringing a very strong track record of success in the hosted and managed services segment and with mid-market enterprises. CA clearly shares our commitment to address customers' evolving requirements for the management of their IT systems, including their move to virtualization and the cloud," Nimsoft president and CEO said.
Nimsoft's operations will report under CA's Cloud Products and Solutions Business Line. It is anticipated that the majority of Nimsoft's approximately 120 employees will remain with CA after the completion of the transaction, which is expected to close by the end of CA's fourth fiscal quarter, ending March 31, 2010.
The acquisition is expected to have minimal impact on fiscal year 2010 results and to be dilutive to earnings per share in fiscal year 2011.
Nimsoft was originally established as Nimbus Software in 1998 and renamed Nimsoft in 2004. It has approximately 800 customers, including nearly 300 MSPs and operates primarily in the United States and Europe.
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