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CommentsCA (www.ca.com), one of the world's largest IT management software companies, announced that it has signed a definitive agreement to acquire Wily Technology, a leading provider of enterprise application management solutions, for $375 million in an all-cash transaction.
“Application management is key to enabling customers to manage IT environments from end-to-end — from applications to infrastructure — and delivering on CA's Enterprise IT Management vision,” said CA President and CEO John Swainson.
Wily provides end-to-end visibility into customer transactions in real time, and enables IT organizations to successfully manage the health and availability of their critical enterprise applications and infrastructure. Its solutions allow IT managers to rapidly detect and diagnose application slowdowns and failures, and better assess the impact of application performance on business success, resulting in better customer service and higher IT productivity.
Wily's revenues grew by 48 percent in 2004 (audited) and 2005 revenues are expected to increase 75 percent (unaudited), a rate that is more than three times as fast as the overall growth of its market segment.
Wily is positioned in the Leader's Quadrant of Gartner Inc.'s Magic Quadrant for J2EE Application Server Management, 2005; according to Gartner, leaders are vendors that are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.
Additionally, Gartner is forecasting that the Application Management market, based on new license revenue, will exceed $1 billion in 2007, and is estimated to reach $1.355 billion in 2009.
“Wily has defined and become the leader in this sector by focusing on customer success,” said Wily Technology CEO Dick Williams. “With CA, we can reach more organizations than ever before with our innovative technology, expert people and best practices.”
At the close of the transaction, Wily will operate as the Wily Technology division within CA's Enterprise Systems Management business unit. Williams will join CA and lead the division, and Lewis Cirne, Wily's founder and chief technology officer will also join the Company. CA expects to retain most of Wily's more than 260 employees.
The acquisition is expected to be completed within three months, pending regulatory approval, and is expected to be dilutive to CA's earnings per share in fiscal 2006 and neutral to earnings per share in fiscal 2007.
The Magic Quadrant is copyrighted April 4, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner.
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