CA to acquire NetQoS for $200 million in all-cash transaction

IT management software provider CA has signed a definitive agreement to acquire NetQoS Inc, a leading provider of network performance management and service delivery solutions, for $200 million. Earlier, CA had acquired two firms, Cassatt and Wily Technology.

Founded 10 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's revenues have experienced a 58-per cent 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.

''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,'' said Ajei Gopal, executive vice president of CA's products and technology group.