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July 6, 2011

Compuware acquires dynaTrace software for $256m

Compuware intends to build next-gen APM offerings as it sees a market shift in this space

By CBR Staff Writer

Nasdaq-listed technology performance company Compuware has acquired provider of application performance management (APM) offerings dynaTrace software, in an all cash deal of $256m.

The acquisition is intended to help Compuware to meet growing business demand for IT agility, and is expected to enable rapid delivery of high-performing modern apps and cloud-based services.

Following the acquisition, Boston-headquartered dynaTrace’s 180 employees, including the leadership team, are expected to remain with Compuware.

The acquisition of dynaTrace will add between $35m and $45m to Compuware’s financial year (FY) 2012 revenues, with the latter expecting it to add nearly $100m to the top line in FY 13.

The acquisition will have three cents per share negative impact on Compuware’s expected FY ’12 earnings per share (EPS) due to purchase accounting, with the company expecting at least four cents per share positive impact in FY ’13.

Compuware chief executive officer Bob Paul said together, Compuware and dynaTrace APM offerings allow IT to meet business demands for performance and agility through insight into the user experience – whether in cloud, complex or traditional environments.

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dynaTrace software chief executive officer John Van Siclen said the APM market is undergoing a transformation; old tools simply can’t meet the competitive requirements of modern applications.

"Compuware sees the same market shift and is committed to building next-generation APM solutions that bring customers greater value, with less effort, faster than ever before," Siclen said.

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