Compuware acquires Gomez and 272 employees

[vetalalumni]

Compuware acquires Gomez and 272 employees.

Compuware To Acquire Gomez For $295 Million

The move will enable Compuware to offer peformance management to customers with apps in the cloud.

By Mary Hayes Weier
InformationWeek
October 7, 2009 10:43 AM

Compuware [[NSDQ: CPWR) Corp. announced Wednesday its plan to acquire Gomez Inc. for $295 million in cash. Compuware is a leader in on-site application performance management, and Gomez, a leader in Web application performance management. Compuware sees the acquisition as helping it better serve customers that have parts of their IT infrastructure in the cloud, and parts of it in their own data centers.

"There is a dramatic shift taking place in IT, as more and more business-critical applications move beyond the corporate firewall and out onto the Internet," said Compuware President Bob Paul in a video presentation released Wednesday morning.

The idea, Paul said, is that an IT administrator will be able to view, from a single dashboard, the performance of ERP applications running in his company's data center, the performance of an E-commerce Web site, and the quality of a Cloud-based provider's service. The companies' products already work together, but more integration will take place after the acquisition to provide IT and business administrators with more types of dashboard views, Compuware said. The deal is expected to close next month.

It appears that Detroit-based Compuware, with $1.1 billion in revenue last year and 4,275 employees, plans to let Gomez continue to operate as an independent entity. None of Gomez's 272 employees will lose their jobs as a result of the acquisition, the companies said, and the leadership team, including CEO Jaime Ellertson, will remain intact. Gomez, with $47 million in revenue last year, and customers that include Amazon, Facebook, Google and Yahoo [[NSDQ: YHOO), will retain its Lexington, Mass., offices.

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.

Compuware emphasized software-as-a-service in its acquisition announcement, noting that about $100 million of its revenue came from SaaS versions of its products last year, and that Compuware and Gomez combined now have 25,000 organizations using SaaS versions of their products.

Per Reuters

* Says deal to close in Nov
* Says "substantially" all of 272 Gomez jobs to remain
Oct 7 [[Reuters) - Business software company Compuware Corp [[CPWR.O) said it agreed to acquire privately held Gomez Inc for $295 million in cash to offer unified application performance management services.
The acquisition is expected to close in November, Compuware said in a statement.
Compuware said "substantially" all of Gomez's 272 employees, including its leadership team, are expected to remain with Compuware.
Compuware makes computer programs that help large companies run data centers, while Gomez provides organizations with an on-demand platform to optimize the performance of their web and mobile applications.
Shares of Detriot-based Compuware closed at $7.18 Tuesday on Nasdaq. [[Reporting by Manasi Phadke in Bangalore; Editing by Gopakumar Warrier).

[spiritofdetroit]

Well, its too bad the employees wont be located in Detroit, or Michigan for that matter, but it is generally a strong sign of health when a company acquires another. While Compuware has certainly made a lot of cuts at their HQ [[the only way that Quicken could fit in there), it seems as if they have reached an optimal number. Their financial numbers look better than they have in some time, especially when you factor in the economic meltdown

[Maof]

http://media.monstersandcritics.com/...omezaddams.jpg

sorry, wrong Gomez

[dcmorrison12]

Well, its too bad the employees wont be located in Detroit, or Michigan for that matter, but it is generally a strong sign of health when a company acquires another. While Compuware has certainly made a lot of cuts at their HQ [[the only way that Quicken could fit in there), it seems as if they have reached an optimal number. Their financial numbers look better than they have in some time, especially when you factor in the economic meltdown

It's funny you say "but it is generally a strong sign of health when a company acquires another..." Have we forgotten about ENRON? They were constantly getting bigger and acquiring new companies, but they still weren't making any money. Plus, their financial numbers looked great to the outside, due to accounting fraud.

Now. to clear things up, by NO means am I sating Compuware is doing poorly and creates false Financial Statements.

My point is to not judge a company acquiring another as a measure of financial stability.

[spiritofdetroit]

Hence the word "generally." One of the best signs of the end of a recession is increased M&A activity. This if a fact that is universally accepted by economists.

[HazenPingree]

Or Packard or Kmart?

[vetalalumni]

Compuware strategy - SaaS. Performance management [[intelligent) includes discrete tech clerks. Growth industry.

Monitoring Tools Can Boost E-Health Record Systems Performance

Federal stimulus money is pushing health care providers to implement e-medical record systems, but keeping the technology performing to doctors' satisfaction is the larger concern.

By Marianne Kolbasuk McGee
InformationWeek
May 5, 2009 02:30 PM

With federal stimulus programs waving a $20 billion carrot in front of health care providers, it's a sure bet that many more hospitals and medical practices will be deploying e-medical record systems over the next several years. But many health-care organizations will likely discover that implementing these systems is one thing; keeping the technology performing to the satisfaction of clinicians is another.

E-medical record systems require doctors and nurses to make huge changes in the workflow habits involved with patient care. That in itself is a tough sell. But if systems performance problems prevent clinicians from accessing crucial patient data or ordering drugs or tests in a timely way, that can become a matter of life or death.

Performance monitoring tools that help IT staff quickly identify and diagnose application, infrastructure, and other systems performance problems before the trouble impacts users can greatly boost clinicians' satisfaction, say health care IT leaders who have deployed e-medical records and other health IT systems.

"It takes a lot to ask nurses and doctors to change their workflow and adopt computerized systems for patient care, they put all their trust that these systems will be reliable and high performing," said Barry Runyon," a health care analyst and VP of research at Garter.

If these systems aren't performing to the service levels clinicians expect, "they'll revolt," said Runyon, who, prior to joining Gartner, had first-hand experience deploying clinical systems for doctors and nurses several years ago while he was CTO at University Medical Center in Tucson, Ariz.

Typically, e-medical record systems from specialty health care software vendors "don't include sophisticated tools" that monitor all systems, applications, and infrastructure in complex clinical enterprises, Runyon said.

So, IT service management tools, including performance monitoring tools from vendors including CA [[NSDQ: CA), IBM [[NYSE: IBM), Hewlett-Packard [[NYSE: HPQ), and Compuware [[NSDQ: CPWR), can help identify "functional gaps" in large clinical enterprise environments, such as hospitals, medical centers, and integrated health systems.

[1KielsonDrive]

Thanks for your emphasis. The first thing I thought was another behemoth chewing up a small, innovative, company and spitting them out. There go the jobs. So far, so good, but we'll see how it works in the long run.

[vetalalumni]

Compuware should be nimbly placed among their bigger peers [[CA, IBM, HP).