ISLANDIA, N.Y. and PLANO, Texas, June 29,
2011 /PRNewswire/ -- CA Technologies (NASDAQ: CA) today
announced a definitive agreement to acquire privately-held
Interactive TKO, Inc. (ITKO), a leading provider of service
simulation solutions for developing applications in composite and
cloud environments, for $330 million
in an all-cash transaction.
Business demand for rapid time-to-market and lower operational
costs is driving IT organizations to quickly adopt new approaches
such as composite application architectures and cloud services. As
the quest for quickly delivering high-quality business services
continues, IT management – from automation and security to
governance and service assurance – becomes the most critical factor
for success.
CA Technologies acquisition of ITKO will add a new and critical
dimension to modern IT management and extend it to encompass the
entire service delivery lifecycle. In particular, the acquisition
will help customers overcome the limitations of current
organizational approaches, breaking down the silos across
development, testing and operations.
"The addition of ITKO to CA Technologies will extend our ability
to deliver a complete set of capabilities to help our customers and
partners to increase their adoption and value from cloud-based
applications," said David Dobson,
executive vice president, Customer Solutions Group, CA
Technologies.
"ITKO's technology allows customers to anticipate how their
applications will perform in alternate environments, significantly
reducing risk, and accelerating their time to value. Together, we
believe we will offer the broadest continuum of IT management
solutions—one that spans planning to production, emphasizes the
service over the infrastructure, and accommodates the new
heterogeneity that includes on-premise, cloud and hybrid
application environments."
On an unaudited basis, for the trailing 12-month period ending
March 31, 2011, ITKO reported revenue
of approximately $39 million, more
than doubling the prior 12-month period. For this same period, ITKO
was highly profitable and generated positive cash flow. Including
transaction-related expenses, the transaction is expected to be
slightly dilutive on a non-GAAP basis and dilutive on a GAAP basis
to CA Technologies earnings per share in fiscal year 2012. The
transaction also is expected to be accretive on a non-GAAP and
dilutive on a GAAP basis to CA Technologies earnings per share in
fiscal year 2013. The acquisition is expected to be completed
within three months, pending regulatory approval.
ITKO's approach and pioneering service simulation technology has
disrupted the traditional application development market. It also
has rendered conventional application lifecycle management (ALM)
methods and technology obsolete for organizations developing
complex composite applications, employing agile development, and
leveraging cloud services and components. ITKO customers are able
to accelerate application delivery cycle times, improve the quality
of services, and save millions in lab infrastructure and testing
costs. ITKO's more than 100 percent bookings and revenue CAGR over
four years is a testament to their ability to work with the world's
largest enterprises and systems integrators.
ITKO's LISA solution enables organizations to "mock up" a
service at enterprise speed and enterprise scale—even if the
application is unfinished or unstable or the physical resource is
unavailable. LISA, which is used by more than 125 enterprise
customers, virtualizes an environment by simulating the behavior of
external services without actually invoking them—e.g. how a
checkout or fulfillment process should interact with a service,
without actually authorizing a credit card or putting a box on a
truck. "What-if" capabilities offer a whole new way to understand
how an application might behave if components are changed—e.g.
swapping an internal RDBMS for a cloud-based database or changing
package shippers.
CA Technologies believes the combination of ITKO, with the
company's solutions for Service Assurance, Service Automation,
Service Management and Turn-key Cloud, will create the most
compelling offerings in the market that accommodate the complexity
inherent in today's applications and environments. For
customers, the benefit is business services that can be built,
tested and delivered in hours and days, not months and years.
"We are thrilled to join CA Technologies because it gives us a
tremendous platform to take our growth to an entirely new level,"
said Shridhar Mittal, president and
CEO of ITKO. "Combining LISA with CA Technologies world-class IT
management will give our customers a solution that is ready for
where they're going, not limiting them to where they've been."
At the close of the transaction, Mittal will join CA
Technologies as general manager of ITKO, a division of CA
Technologies. It is anticipated that all of ITKO's approximately
120 employees will join CA Technologies.
The acquisition is a continuation of CA Technologies strategy
that balances investments to grow the company with returning cash
to shareholders. So far in its 2012 fiscal year, the company has
repurchased $150 million of its
common stock.
For additional information about CA Technologies acquisition of
ITKO, please view the supplemental materials posted on our website
at http://investor.ca.com.
About ITKO
ITKO's LISA is the Platform for Agile, Composite Application
Development, helping customers to reshape their enterprise
application development lifecycles. Our LISA virtualization and
validation software optimizes complex and cloud-based applications
throughout the software lifecycle, eliminating costly constraints
and defects, while improving agility in an environment of constant
change.
ITKO's LISA solutions eliminate software dependences, decrease
release times, and increase the reliability of composite
applications that leverage cloud computing, SOA, BPM, integration
suites, and ESBs. ITKO's global customers include 5 of the top 6
Fortune 500 commercial banks, 5 of the top 6 Fortune 500
telecommunications firms as well as leading firms in insurance,
travel, retail, utilities and government agencies. For more
information, visit http://www.itko.com.
(Logo: http://photos.prnewswire.com/prnh/20100516/NY05617LOGO
)
About CA Technologies
CA Technologies (NASDAQ: CA) is an IT management software and
solutions company with expertise across all IT environments – from
mainframe and distributed, to virtual and cloud. CA Technologies
manages and secures IT environments and enables customers to
deliver more flexible IT services. CA Technologies innovative
products and services provide the insight and control essential for
IT organizations to power business agility. The majority of the
Global Fortune 500 relies on CA Technologies to manage evolving IT
ecosystems. For additional information, visit CA Technologies at
www.ca.com.
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Copyright © 2011 CA, Inc. All Rights Reserved. One CA Plaza,
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Press Contacts
David Resnic
CA Technologies
Phone: (508) 628-8426
david.resnic@ca.com
Jennifer Hallahan
CA Technologies
Phone: (631) 342-4746
jennifer.hallahan@ca.com
SOURCE CA Technologies