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Computer Associates International and Niku, which is in information
technology management and governance (IT-MG) solutions, announced that they have
signed a definitive agreement under which CA will acquire Niku in an all-cash
transaction. It is valued at $21.00 per fully diluted common share, or
approximately $350 million.
"With the integration of Niku, CA will be able to deliver the broadest
and most comprehensive IT governance and service management solutions in the
market to help our customers fully align IT with the business," said CA
President and CEO, John Swainson. "IT governance is the number one priority
for CIOs as they demand that their IT investments contribute to the growth,
productivity and profitability of their organizations. We look forward to
working with the Niku
team to leverage CA's existing systems management strengths and sales force to
expand our offerings in what will be one of our fastest growing businesses -
Business Service Optimization."
By acquiring Niku, whose revenue grew 45% in its last fiscal year, CA gains a
critical IT governance offering that its customers are demanding, in a market
segment that is growing faster than the overall software industry. The solutions
will be integrated with technologies from CA's $1.5 billion Unicenter business
to extend the Company's addressable market and make CA's overall systems
management business even more competitive.
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JOHN SWAINSON
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To deliver broadest and most comprehensive IT governance and service management solutions for customers to align IT with their business |
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Niku's flagship-Clarity IT-MG software is an integrated suite that spans
the full IT life cycle, from investment selection, to execution and delivery of
initiatives, to results assessment. This capability gives executives
comprehensive, real-time views into their organizations' portfolio of IT
investments, enabling them to run IT like a business. In January 2005, CA
announced it had signed a partnership to resell, service and support Niku's
Clarity software.
"Our combined company will be able to provide global customers with a
one-stop source for an integrated suite of solutions - including strategic
planning, project and portfolio management, service management, service
delivery, change management and IT financial management," said Niku
President and CEO Joshua Pickus. "We are excited to expand our relationship
with CA through a transaction that will benefit our customers, employees and
shareholders."
Upon completion of the transaction, Niku's IT management and governance
solutions will be integrated with CA's Business Service Optimization (BSO)
unit, headed by Senior VP and GM, Jacob Lamm. Joshua will join CA as Senior VP
of BSO. It is anticipated that the vast majority of Niku's approximately 290
employees will remain with CA after the completion of the transaction. The
acquisition is expected to be completed within three months, pending regulatory
approval and the approval of Niku's shareholders.
DQC NEWS BUREAU
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