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Compuware Corporation Buys Gomez for $295 Million
By Germaine Lombardo for CEOWORLD Magazine Updated:October 7, 2009
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Software company Compuware Corporation (Nasdaq: CPWR) agreed to pay $295 million to acquire privately held Gomez Inc. The deal, which is expected to close in November, gives Compuware a company that manages, tests and measures the performance of corporate Web sites and mobile applications.
Compuware Chief Operating Officer Bob Paul said Compuware will have a well-rounded suite of services for corporate computer systems as well as on the Web and mobile, which is key as businesses move critical applications onto the Internet.
Privately held Gomez, based in Lexington, Mass., employs 272 people worldwide. Gomez executives and the rest of the employees are expected to stay with Compuware. In 2008, Gomez recorded revenue of $47 million. Its clients include Google Inc. and Facebook.
For its first fiscal quarter ended June 30, Compuware reported net income of $51.1 million, compared with $34.7 million in the same quarter last year. However, revenues dropped to $214.4 million from the $298.6 million reported last year. Software licenses were down 34% to $40.5 million, and maintenance fees dropped 12% to $111.1 million.
The move appears to represent a successful exit for Gomez backers ABS Ventures, AdAstra, Dolphin Equity Partners and Doughty Hanson & Co. Since its founding in 1997, those investors have put $66 million into Gomez.
With the addition of Gomez — which delivers its offering through a Software as a Service (SaaS) model — to Compuware’s SaaS revenues, Compuware becomes the world’s leading SaaS infrastructure management provider. SaaS continues to become a more desirable way to acquire software due to a lower cost of ownership and faster, easier adoption and maintenance.
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