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CA to acquire Nimsoft

11 March 2010 , Written by Dhruv Tanwar
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CA Inc. has said that it has signed a definitive agreement to acquire privately-held Nimsoft, Inc., a provider of IT performance and availability monitoring solutions for emerging enterprises and Managed Service Providers (MSPs), in an all-cash transaction valued at $350 million.

CA said the acquisition would extend its ability to meet the unique IT management needs of emerging enterprises and MSPs, both of which are playing leading roles in the growth of cloud computing. CA said it 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 an entirely new set of customers to its base, which historically has been comprised of large enterprises.

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The Nimsoft Unified Monitoring solution is designed to allow MSPs complete visibility into the performance and availability of their customers’ business applications across internal and external IT infrastructures. Nimsoft has developed monitoring and reporting solutions for public cloud and on-demand offerings like Google Apps for Business, The Rackspace Cloud, Amazon Web Services and EC2, Salesforce.com, as well as internal applications, databases, and physical and virtual server environments. CA said Nimsoft’s technology and go-to-market approach also will leverage CA’s own presence in growing international markets where the company expects cloud computing and hosted/managed services to play a central role in business development.

Chris O’Malley, CA’s executive vice president, Cloud Products and Solutions business said the planned acquisition of Nimsoft will equip CA 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. “Penetration of these markets will further expand our global leadership in IT management and complement our existing strength with large enterprise customers.”

CA’s recent acquisitions include Cassatt, NetQoS and Oblicore and it has the planned acquisition of 3Tera in the pipeline. 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. CA said it intends to work closely with Nimsoft’s robust network of MSPs, hosting providers, outsourcing providers and partners to penetrate emerging markets.

Analysts say CA’s acquisition of Nimsoft, following its other recent acquisitions in the cloud computing space, points to a planned expansion of its capabilities “to meet the needs of its existing enterprise customers while also stepping up to address those of the emerging enterprise and MSP sectors.”

CA said that post-acquisition, Nimsoft’s operations will fall under CA’s Cloud Products and Solutions Business Line, and most of its approximately 120 employees will remain with CA. It expects the transaction to close by the end of its fourth fiscal quarter ending March 31, 2010. CA said tha acquisition would have minimal impact on fiscal year 2010 results and would be dilutive to earnings per share in fiscal year 2011.
 

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