NetCool developer goes to IT giant
IBM and Micromuse Inc have entered into a definitive agreement for IBM to acquire the equity of Micromuse, a publicly held company based in San Francisco, in an all-cash transaction at a price of approximately $865 million, or $10 per share. The acquisition is subject to Micromuse shareholder and regulatory approvals and other customary closing conditions. It is expected to close in the first quarter of the 2006 calendar year.
Micromuse did great business with its NetCool network management and monitoring suite of products, riding the introduction of IP services in fixed line and mobile networks, providing service assurance information to large enterprise and carrier customers. Its acquisition by IBM is a sign of the giant IT services company’s continuing move into network OSS and monitoring products and services. NetCool will give IBM a rival to HP’s OpenView products.
ARMONK, NY and SAN FRANCISCO, CA – 21 Dec 2005:
IBM and Micromuse Inc. (Nasdaq: MUSE) today announced the two companies have entered into a definitive agreement for IBM to acquire the equity of Micromuse Inc., a publicly held company based in San Francisco, in an all-cash transaction at a price of approximately $865 million, or $10 per share. The acquisition is subject to Micromuse shareholder and regulatory approvals and other customary closing conditions. It is expected to close in the first quarter of the 2006 calendar year.
Micromuse is a leading provider of network management software used by banks, telecommunications carriers, governments, retailers and other organizations to monitor and manage their sophisticated technology infrastructures. The software helps customers manage increasingly complex IT systems that support the proliferation of voice and video traffic, in addition to data, due to the growing adoption of voice over IP (VoIP), audio and video services delivered over the Internet. The combination of Micromuse’s software and IBM’s IT service management technology will provide customers with a comprehensive approach for reducing the complexity of their IT environments, lowering operational costs, and addressing compliance mandates.
“Today’s networks are no longer just pipelines of data — customers are incorporating data, voice and video into their business operations at an astounding pace,” said Al Zollar, General Manager, IBM Tivoli software. “The proliferation of Internet telephony and video-on-demand are not only changing the way people use information technology, but also how companies manage it. The addition of new capabilities raises the complexity of today’s networks, which require real-time network and service management. The combination of Micromuse and IBM Tivoli will help companies manage these sophisticated IT environments, deploy new business service management solutions, and deliver new network-based services to customers, employees and trading partners.”
IBM will use Micromuse software to complement its security management software by alerting IT staff about attempted network breaches and strengthen the IT service management capabilities of IBM’s Tivoli software portfolio.
Micromuse reported a 10% year-to-year revenue increase, to $160.8 million, for the fiscal year ended September 2005.