Software Futures MD Aletha Ling has welcomed last week`s acquisition of New Dimension Software by BMC Software. BMC acquired New Dimension for an effective $650 million, creating a new global force in the systems management arena. The acqusition complements BMC`s pending merger with Boole and Babbage which is expected to be complete March 30.
"In every respect this is good news for us and our many South African customers," says Ling, adding that Software Futures retains the agency for New Dimension, despite BMC`s acquisition. "We have just signed a three-year distribution agreement with New Dimension. We are New Dimension`s most successful distributor, worldwide, having secured more than 55% of the market for their solutions. BMC`s plan is to operate New Dimension as a separate subsidiary, leveraging its technology and branding."
BMC and New Dimension are a logical fit, notes Allen Lewis, MD of Software Futures` systems management business, because they have no competitive products. "All of their products are complementary," notes Lewis. "For us BMC`s acquisition of New Dimension is absolute endorsement of the line we have taken with the Control range of products, and the success we have enjoyed in the local market."
BMC is the world leader in providing application service assurance (ASA) solutions that improve the availability, performance and recovery of business-critical applications. New Dimension is the world leader in point solutions for enterprise management, specialiing in job scheduling, managing computer-generated output and documents, and security and user administration.
BMC intends to maintain and expand New Dimension`s operations in Israel, home to large teams of highly skilled software developers. "This transaction is a win-win for all parties: New Dimension, BMC, our customers and the industry as a whole," adds Lewis.
The tranaction is a cash purchase valued at more than $650 million. BMC software anticipates an inprocess research and development charge of up to 30% which will allow New Dimension to accelerate its development process and produce even better solutions than it has to date.
When the New Dimension Software and Boole & Babbage transactions are completed, BMC will employ 5 000 people in 26 countries. Trailing annual revenues of the combined companies will be $1,4 billion.
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