Computer Associates International, Inc (NYSE:CA) has announced that it completed its acquisition of Niku, including its leading information technology governance (ITG) solution, on 29 July 2005.
"The Niku acquisition gives CA a leading solution in one of the fastest growing software sectors - IT governance - enabling CA to deliver the most robust business service optimisation solutions on the market," said Jacob Lamm, senior vice-president and general manager of CA`s Business Service Optimisation (BSO) business unit.
"We welcome Niku employees, customers and partners to CA. We look forward to working with them to build on CA`s strengths in systems management and help organisations drive more value from their IT assets, services and investments."
With the acquisition of Niku, whose revenue grew 45% in its last fiscal year, CA gains a best-in-class offering in a market segment that is growing faster than the software industry as a whole. Niku`s ITG solutions will be integrated with CA`s BSO unit. CA`s BSO solutions enable customers to align IT investments with business objectives, control IT costs, deliver IT as a service, and meet heightened compliance requirements. CA estimates the market for its BSO solutions at $7.9 billion in 2004 with an estimated compounded annual growth rate of 8% through 2008.*
"We are excited to be a part of the CA team and leverage the resources of a $3.5 billion organisation," said Josh Pickus, senior vice-president of BSO at CA and the former CEO of Niku.
"With CA`s resources, we will be able to integrate IT governance solutions with other BSO offerings and bring the benefits to an even wider audience, achieving significant sales growth worldwide."
Niku`s flagship ITG solution, Clarity, is an integrated suite that enables customers to understand the full and true cost of IT spending so they can allocate resources more strategically and ensure the alignment of IT with business strategy. The solutions span the full IT lifecycle, from investment selection, through execution and delivery of initiatives, to assessment of results. This capability gives executives comprehensive, real-time views into the entire IT investment portfolio.
Niku will be run within CA`s BSO business unit as the Clarity Division reporting to Pickus, who will be responsible for sales, professional services, marketing, and research and development of the Clarity line of products. The vast majority of Niku employees are joining CA through the acquisition.
CA will continue to fully support Niku products and will honour all obligations (including special features) specified in current CA and Niku contracts.
Customers can continue to access Niku support at http://niku.com/, via e-mail at support@niku.com or by calling 1-888-550-6458 (North America); support-etz@niku.com or 08459-888788 (Europe); or support-apac@niku.com or 3-9653-9247 (Asia/Pacific). The Niku customer portal at http://support.niku.com/ will also continue to be available to customers.
A white paper on CA`s technology integration directions and roadmap for its BSO solutions is available at http://ca.com/bso/roadmap.pdf.
The merger consideration to be paid in cash for each share of Niku common stock outstanding immediately prior to the closing is $21 without interest. The aggregate cash consideration to be paid by CA is approximately $350 million. CA will soon mail a letter of transmittal and instructions to former holders of record of Niku common stock to be used for the exchange of Niku shares for the cash consideration. Niku stockholders who own shares through a broker will be contacted by their broker. Former Niku stockholders with further questions regarding the exchange of Niku shares for the cash consideration should contact Deutsche Bank Trust Company Americas, CA`s exchange agent, by telephone at 1-800-735-7777. In connection with the consummation of the transaction, Niku requested the voluntary delisting of Niku`s common stock from the Nasdaq National Market, effective as of the close of business on 29 June 2005. Concurrently with delisting, Niku filed a Form 15 with the Securities and Exchange Commission to effect the deregistration of its common stock.
* Source: Company estimates.
Share
Computer Associates International, Inc (NYSE:CA), one of the world`s largest management software companies, delivers software and services across operations, security, storage, lifecycle and service management to optimise the performance, reliability and efficiency of enterprise IT environments. Founded in 1976, CA is headquartered in Islandia, New York, and serves customers in more than 140 countries. For more information, please visit http://ca.com.
Editorial contacts