SOUTHFIELD ? Computer Associates International Monday announced it has completed its acquisition of Niku, an IT Management and Governance solutions provider, in an all cash transaction valued at $350 million.
Niku’s primary software product, Clarity IT-MG, is an integrated suite that spans the full IT life cycle. The purchase followed a January partnership with Niku. The acquisition is subject to approval by both regulatory authorities and Niku’s shareholders and is expected to be completed by August 2005.
In CA?s 10-K report filed in June with the Securities and Exchange Commission, CA said targeted acquisitions of technologies are as critical to the company?s long-term success as internal product development.
?We will continue to make small- to medium-sized acquisitions in our core areas of systems and security management for the enterprise, similar to our recent acquisitions of Pest Patrol, Netegrity, Concord and Niku,?? CA reported.
?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 Optimization solutions on the market,? said Jacob Lamm, senior vice president and general manager of CA?s Business Service Optimization (BSO) business unit.
Niku?s ITG solutions will be integrated with CA?s BSO unit, as the Clarity Division. 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 percent through 2008. The vast majority of Niku employees are joining CA through the acquisition.
CA has a growing presence in the Midwest, where the company has large regional offices in Indianapolis, Indiana and Southfield.
