CA To Acquire NetQoS, Inc. In $200 Million All-Cash Transaction

Deal will help enterprise it organizations and service providers optimize business and it service assurance, delivery, and quality of experience

September 14, 2009

6 Min Read
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Deal Will Help Enterprise IT Organizations and Service Providers Optimize Business and IT Service Assurance, Delivery, and Quality of Experience

ISLANDIA, N.Y. and AUSTIN, Texas, September 14, 2009 - CA, Inc. (NASDAQ:CA), the world's leading independent IT management software company, today announced that it has signed a definitive agreement to acquire privately-held NetQoS?? Inc., a leading provider of network performance management and service delivery solutions, for $200 million.

"CA offers the industry's strongest and most complete service assurance and delivery portfolio," said Ajei Gopal, executive vice president of CA's Products and Technology Group. "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."

"NetQoS customers and partners will benefit from CA's extraordinary development capabilities, outstanding sales force, and global customer support infrastructure," said Joel Trammell, chief executive officer, NetQoS. "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."

CA is a recognized leader in the management of networks, systems, application performance, and cloud computing.* NetQoS' industry-leading solutions will extend CA's capabilities in each of these areas:Network and Systems Management

The combination of CA eHealth?? Network Performance Manager, CA Spectrum?? Infrastructure Manager and the NetQoS Performance Center will give CIOs and network engineers and operations managers better visibility and control of critical services in their physical and virtual network and systems environments. This will enable customers to flexibly and efficiently deliver high-quality services such as unified communications.

Application Performance Management

By linking transaction views to the infrastructure, CA Wily Application Performance Management and the NetQoS Performance Center will enable a new level of quality of experience, in which the infrastructure is application-aware. This 360-degree view of applications will provide customers both an outside-in and inside-out perspective of their business and IT services, something no other single vendor can provide.

Cloud ManagementCA's acquisition of NetQoS builds on the assets CA acquired from Cassatt earlier this year, as well as CA's organically developed CA Spectrum?? Automation Manager for dynamic performance-based automation of physical, virtual and cloud computing environments. As enterprises and service providers become increasingly reliant on the shared infrastructure of private and public computing clouds, CA and NetQoS will provide a robust level of network and systems traffic management that will be critical to successfully delivering cloud-based services.

Founded ten years ago, NetQoS has more than 1,000 active customers worldwide, including many in the Fortune 100. With annual revenue of $56 million in 2008, NetQoS' revenues have experienced a 58 percent CAGR over the past five fiscal years.

At the close of the transaction, Joel Trammell will join CA as senior vice president and general manager, and Dr. Cathy Fulton, NetQoS chief technology officer and executive vice president of Products, will join CA as senior vice president, Software Engineering. Initially, NetQoS will operate as an independent entity within CA's Infrastructure Management and Automation business unit and will report to Ajei Gopal. It is anticipated that a majority of NetQoS' 250 employees will remain with CA.

The all-cash transaction is expected to be slightly dilutive in fiscal 2010 on CA's non-GAAP and GAAP earnings per share. The acquisition is expected to be completed by the end of the calendar year, pending regulatory approvals.

* Bloor Research, "Network and Voice Management Software" by Peter Williams and Carl Potter, February 2008.
About CA
CA (NASDAQ: CA), the world's leading independent IT management software company, helps customers optimize IT for better business results. CA's Enterprise IT Management solutions for mainframe and distributed computing enable Lean IT--empowering organizations to more effectively govern, manage and secure their IT operations. For more information, visit www.ca.com.
About NetQoS, Inc.
NetQoS provides network performance management software and services that improve application delivery across the world's most complex networks. More than 1,000 service providers, government agencies, and large enterprises - including half of the Fortune 100 - use the NetQoS Performance Center to monitor application service levels, troubleshoot problems quickly, and plan for change. Representative NetQoS customers include Chevron, Lockheed Martin, Reuters Group plc, American Express, Siemens, Boeing, Deutsche Telekom, NASA, and Barclays Global Investors. Headquartered in Austin, Texas, NetQoS has R&D centers in Austin and Raleigh, N.C., and regional sales offices in London and Singapore. For more information, visit www.netqos.com or call (877) 835-9575.Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication (such as statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) constitute "forward-looking statements" that are based upon the beliefs of, and assumptions made by, the Company's management, as well as information currently available to management. These forward-looking statements reflect the Company's current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: global economic factors or political events beyond the Company's control; general economic conditions, including concerns regarding a global recession and credit constraints, or unfavorable economic conditions in a particular region, industry or business sector; impact of revenue recognition accounting policies on operating results; failure to expand channel partner programs; ability to adequately manage and evolve financial reporting and managerial systems and processes; ability to successfully integrate acquired companies and products into existing businesses; competition in product and service offerings and pricing; ability to retain and attract qualified key personnel; rapid technological and market changes; dependence on third party operating systems and software; use of software from open source code sources; discovery of errors in the Company's software and potential product liability claims; significant amounts of debt and possible future credit rating changes; the failure to protect the Company's intellectual property rights and source code; the timing of orders from customers and channel partners; reliance upon large transactions with customers; sales to government customers; breaches of the Company's software products and the Company's and customers' data centers and IT environments; lack of market growth in key product areas; use of third party microcode; third party claims of intellectual property infringement or royalty payments; fluctuations in foreign currencies; failure to successfully execute restructuring plans and related sales model changes; successful outsourcing of various functions to third parties; potential tax liabilities; and these factors and the other factors described more fully in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Trademarks

Copyright ?? 2009 CA. All Rights Reserved. One CA Plaza, Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

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