CA Picks Up NetQoS For $200 Million In Cash

IT management software company CA (Computer Associates) this morning announced that it intends to acquire privately-held NetQoS, a provider of network performance management and service delivery solutions, for $200 million in an all-cash transaction. The acquisition is expected to be completed by the end of the calendar year, pending regulatory approvals.

If the deal goes through, it will be CA’s biggest acquisition in three years (since it bought Wily Technology for $375 million in January 2006).

According to the announcement, NetQoS’ solutions will extend CA’s capabilities in areas such as network and systems management, application performance management and cloud management.

Founded ten years ago, NetQoS has over 1,000 active customers worldwide, including many in the Fortune 100. With annual revenue of $56 million in 2008, NetQoS’ revenues have experienced a 58 percent CAGR over the past five fiscal years.

Both companies anticipate that the majority of NetQoS’ 250 employees will remain with CA. At the close of the transaction, NetQoS co-founder and CEO Joel Trammell will join the company as senior VP and general manager, and Dr. Cathy Fulton, NetQoS CTO and executive VP of Products, will join CA as senior VP of 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.