Compuware Corporation today announced it has signed a definitive agreement to acquire privately held Changepoint Corporation for $100 million cash. This acquisition will augment Compuware`s ability to help CIOs effectively manage scarce resources to maximise the value IT brings to the business. The transaction is anticipated to close in the near future.
"CIOs need to be able to clearly measure, allocate and demonstrate the value they bring to the business," said Peter Karmanos, Jr, Compuware chairman and CEO. "Compuware will now be able to offer CIOs unmatched insight and visibility into their people, projects, resources and applications. Our award-winning solutions and experience in development, quality assurance and performance management - as well as our understanding of both distributed and legacy systems - will make Compuware`s governance offering the broadest available today."
Founded in 1992 and headquartered in Toronto, Changepoint offerings help IT organisations by providing critical insight into IT spending, operations and management. For the 12 months ended 31 March 2005, Changepoint`s revenues are expected to be US$30 million. Approximately 190 employees are expected to join Compuware and form a new business unit as a result of this transaction.
"Companies invest great sums managing business-driving applications," said Theresa Lanowitz, research director, Gartner Inc. "IT governance is a proactive way for CIOs to engage with the business, providing IT executives with the visibility they need to ensure that these technology investments achieve tangible business results. Clearly, CIOs could greatly benefit from an IT governance solution that helps them enhance the effectiveness of their organisation across the application lifecycle."
The Compuware IT governance offering will enable CIOs to:
a. More easily and accurately quantify and measure the business value of technology investments across distributed and legacy architectures through a straightforward "dashboard" approach.
b. Bring IT governance to the development phase of the application lifecycle, where most IT budgets are spent and 80 per cent of defects are introduced.
c. Communicate effectively with line-of-business partners and other stakeholders.
d. Integrate business and IT cultures to foster better collaboration.
"Compuware`s geographic reach, strong sales infrastructure and brand recognition will allow us to more effectively meet the rising demand for IT governance solutions," said Gerry Smith, Changepoint president and CEO. "We`re excited about the opportunity this presents for bringing our proven technology into broader markets."
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Changepoint Corporation provides global services organisations and corporate IT departments with business process automation software to improve efficiency and provide total visibility into operations, enabling the proactive management of operational and employee performance. Leading services organisations choose Changepoint for its unmatched breadth, depth and integration.
Certain statements made in this release that are not historical facts, including those regarding the company`s future plans, objectives and expected performance, are "forward looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only on the date of the release. While we believe any forward -looking statements we made are reasonable, actual results could differ materially since the statements are based on our current expectations about Changepoint and our acquisition of Changepoint and are subject to risks and uncertainties.
Risks and uncertainties about the company are discussed in the company`s reports filed with the Securities and Exchange Commission. You should refer to and consider these factors when relying on such forward-looking information. The company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Compuware Corporation
Compuware Corporation (NASDAQ: CPWR) is a world leader in delivering software and services that enable businesses to manage their enterprises and maximise the value of their IT assets. Compuware solutions accelerate the development, improve the quality and enhance the performance of business-driving applications. Founded in 1973, Compuware serves the world`s leading IT organisations, including more than 90% of the Fortune 100 companies. Learn more about Compuware at http://www.compuware.com.
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