Mercury Interactive said Tuesday that it has signed an agreement to acquire privately held Kintana for approximately $225
million in cash and stock, underscoring a trend towards consolidation in the enterprise software market.
Application delivery and management software maker Mercury Interactive said it was scooping up Kintana, which makes IT governance
software, in an effort to strengthen its position by allowing it to offer more complete offerings for managing businesses.
The buy comes on the heels of enterprise software maker Oracle's headline-grabbing bid to acquire industry rival PeopleSoft,
and PeopleSoft's planned buy of J.D. Edwards.
"Our industry is at an inflection point," Mercury Interactive Chairman, Chief Executive Officer, and President Amnon Landan
said in a statement released Tuesday. "CIOs are grappling with how to manage costs, risks and performance against a backdrop
of business complexity."
Sunnyvale, Calif.-based Mercury Interactive said the combination of its application delivery software with Kintana's compliance
products will give technology executives more complete business management offerings.
The transaction is worth $100 million in Mercury Interactive stock and $125 million in cash and is expected to close in the
third-quarter of 2003, pending antitrust clearance and stockholder approval, Mercury Interactive said. The company will also
assume all of Kintana's unvested outstanding options.
Kintana's 210 employees will constitute a new business unit of Mercury Interactive. Sunnyvale, Calif.-based Kintana reported
revenue of $44.5 million for 2002.
E-mail
Printer Friendly
Reprints
(InfoWorld) - In the litigious world we live in, deploying a unified communications platform in your enterprise could...
