Deal offers CA 'highest likely return on offshore cash'
CA Technologies has swooped on Austrian business automation vendor Automic, in a deal worth €600mn ($644mn).
Based in Vienna, Austria, Automic offers workload automation tools enabling organizations to manage and monitor IT infrastructure and processes. The firm employs 600 employees across offices in Vienna, Paris, Japan and Bellevue in Washington State, serving customers in sectors including energy, financial services, healthcare, manufacturing, retail and telecommunications.
The transaction has been unanimously approved by each firm's board of directors and is expected to close during CA Technologies' fourth financial quarter, ending 31 March 2017.
The acquisition will see the U.S. firm add Automic's automation products to its own portfolio to complement its DevOps offering.
"With the acquisition of Automic, we will deliver automation, scale work flows and business processes, while reducing costs and greatly improving accuracy," CA's chief product officer Ayman Sayed claimed in a statement.
"Strategically, [Automic] accelerates our position with its cloud-enabled platform. Operationally, it expands our reach across Europe. And financially, it meets our rigorous hurdle rates, while providing the highest likely return on offshore cash."
CA said the acquisition will boost its FY2017 revenues by 0.5 percent, but cause operating margin to dip by one percent, assuming that the deal closes in early January 2017.