Wednesday, April 6, 2005

CA to Acquire Concord Communications

Computer Associates (CA) agreed to acquire and Concord Communications, (NASDAQ:CCRD), a provider of network service management software solutions, in an all-cash transaction valued at $17 per fully diluted common share, or approximately $330 million. CA will also assume approximately $20 million in net debt from Concord for a total purchase price of $350 million.

Concord, which is based in Marlboro, Massachusetts, offers Business Service Management (BSM) software that reduces IT downtime, improves capacity planning, and optimizes service level management. Concord's eHealth technology, which provides proactive network performance management and predictive capacity planning, is deployed by telecommunications companies, service providers and enterprises around the world. The management solution can be used in VoIP and wireless mobile networks. Concord claims 23 of the world's 24 largest service providers as customers.

Concord recently acquired Aprisma Management Technologies and its SPECTRUM Business Service Intelligence software, which manages the availability of IT infrastructures. Computer Associates said SPECTRUM's service modeling and patented technology in the areas of root cause analysis, relationship mapping, impact analysis, topology discovery, and condition correlation will be of significant value to CA customers as part of the company's Unicenter solutions portfolio.

It is anticipated that the vast majority of Concord's approximately 640 employees will remain with CA after the completion of the transaction.

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