CA to Buy Wily for $375M

CA has signed a definitive agreement to acquire Wily Technology for $375 million in an all-cash transaction

January 5, 2006

2 Min Read

ISLANDIA, N.Y., and BRISBANE, Calif. -- CA (NYSE:CA), one of the world's largest IT management software companies, today announced that it has signed a definitive agreement to acquire Wily Technology, a leading provider of enterprise application management solutions, for $375 million in an all-cash transaction.

"Application management is key to enabling customers to manage IT environments from end-to-end — from applications to infrastructure — and delivering on CA's Enterprise IT Management vision," said CA President and CEO John Swainson. "Wily is the leader in this sector and the fastest growing major company in a fast growing market. With this acquisition, CA will be the only company to address the management of applications, IT assets and users across all hardware and software, from the mainframe to the distributed environment."

Wily provides end-to-end visibility into customer transactions in real time, and enables IT organizations to successfully manage the health and availability of their critical enterprise applications and infrastructure. Its solutions allow IT managers to rapidly detect and diagnose application slowdowns and failures, and better assess the impact of application performance on business success, resulting in better customer service and higher IT productivity.

Wily's revenues grew by 48 percent in 2004 (audited) and 2005 revenues are expected to increase 75 percent (unaudited), a rate that is more than three times as fast as the overall growth of its market segment. CA expects Wily to contribute approximately $72 million of revenue in CA's fiscal year 2007 on a ratable basis. Billions of web transactions a day are monitored by Wily's software — more transactions for more customers than all its competitors combined. Wily's technology is installed in more than 450 leading enterprises and government organizations worldwide.

Wily is positioned in the Leader's Quadrant of Gartner Inc.'s Magic Quadrant for J2EE Application Server Management, 2005¹; according to Gartner, leaders are vendors that are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market. Additionally, Gartner is forecasting that the Application Management market, based on new license revenue, will exceed $1 billion in 2007, and is estimated to reach $1.355 billion in 2009².

"Wily has defined and become the leader in this sector by focusing on customer success," said Wily Technology CEO Dick Williams. "With CA, we can reach more organizations than ever before with our innovative technology, expert people and best practices. And, by accelerating our development and integrating our technology with CA's solutions, we will be able to deliver a scope of management products unmatched by anyone else. I'm excited to be joining the CA team and for the opportunity to build a best-in-class enterprise management software company."

CA Technologies (Nasdaq: CA)

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