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01 September 2010 ,
Written by Dhruv Tanwar
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CA Technologies is buying Arcot Systems, a provider of authentication and fraud prevention systems, for $200 million in cash.
Founded in 1997, Arcot is a recognized visionary in the Web fraud prevention sector. It has 35 patents awarded and pending, and co-invented with Visa the 3-D Secure protocol for online payment security. Arcot's business features a subscription-based model, with almost 90 percent of revenue recurring and nearly 100 percent customer retention rates. CA's statement said Arcot has been cash-flow positive since the 2Q 2009. Arcot is backed by investors and venture funds that include Accel Partners, Adobe Ventures, Goldman Sachs, INVESCO Private Capital, Onset Ventures, Raza Ventures, Skandinaviska Enskilda Banken, Wells Fargo, Vedanta Capital and Visa.
CA expects the transaction to close by the end of its second quarter ending September 30, 2010, subject to regulatory approvals and customary closing conditions.
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