By Will Sturgeon, 10 June 2005 12:50
NEWS Consolidation in the high-tech industry is continuing apace and Computer Associates has announced its latest acquisition with the $350m purchase of IT management and governance solutions provider Niku.
Governance and management has become an increasingly prominent target for IT spend in the wake of increased regulation and legislation and also as companies attempt to get more out of existing infrastructure and processes.
Speaking on a live webcast to analysts, investors and press, CA COO Jeff Clarke described the deal as a "highly-targeted acquisition in a high-growth area".
The deal, which brings Niku's solutions within the CA Unicenter brand, will see CA pay $21 per fully diluted share in Niku, or approximately $350m. With Niku's cash taken into consideration the deal is valued at $285m.
Clarke said CA is seizing upon the high demand among customers to prove the viability of IT spend as well as quantify related infrastructure and staffing costs. Greater transparency throughout the lifecycle of a project is also increasingly important for CIOs charged with providing a robust business case, he said.
Joshua Pickus, CEO of Niku - which means 'meat' in Japanese - said: "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."
CA expects the majority of Niku's 270 employees to move across after completion of the deal.
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