By The Associated Press
Wednesday, March 10, 2010
Technology management software company CA Inc. said Wednesday that it's buying Nimsoft Inc. for $350 million in cash.
The acquisition gives CA a cadre of smaller-company clients served by Nimsoft whose revenues typically run from $300 million to $2 billion. CA historically has focused on serving larger corporate customers.
CA expects these smaller companies to account for a quarter of tech management software spending by 2013.
Nimsoft sells software that monitors the different components of a company's information technology environment, from servers and networks to applications. Its software helps a company run its IT systems more efficiently, whether at the office or virtually in third-party servers.
Nimsoft also sells to managed service providers, which handle smaller firms' IT needs. The deal, expected to close by the end of March, should have a minimal effect on 2010 financials but will be a drag on earnings in 2011.
Nimsoft, a privately held company in Redwood City, Calif., formerly called Nimbus Software, has about 800 clients mainly in the U.S. and Europe. CA expects to retain Nimsoft's 120 employees, including CEO Gary Read.
Shares of CA, based in Islandia, N.Y., fell 27 cents to $22.60 on Wednesday.