Compuware Buying Changepoint For $100M
Compuware Corporation (NASDAQ: CPWR) has signed a definitive agreement to acquire privately held Changepoint Corporation for $100 million cash. Compuware says the acquisition “will augment Compuware's ability to help CIOs effectively manage scarce resources to maximize the value IT brings to the business.” The transaction is anticipated to close in the near future.
Compuware offered these details:
"CIOs need to be able to clearly measure, allocate and demonstrate the value they bring to the business," said Peter Karmanos, Jr., Compuware Chairman and CEO. "Compuware will now be able to offer CIOs unmatched insight and visibility into their people, projects, resources and applications. Our award-winning solutions and experience in development, quality assurance and performance management--as well as our understanding of both distributed and legacy systems--will make Compuware's governance offering the broadest available today."
Founded in 1992 and headquartered in Toronto, Changepoint offerings help IT organizations by providing critical insight into IT spending, operations and management. For the twelve months ended March 31, 2005, Changepoint's revenues are expected to be $30 million (USD). Approximately 190 employees are expected to join Compuware and form a new business unit as a result of this transaction.
"Companies invest great sums managing business-driving applications,"
Said Theresa Lanowitz, research director, Gartner Inc. "IT governance is a proactive way for CIOs to engage with the business, providing IT executives with the visibility they need to ensure that these technology investments achieve tangible business results. Clearly, CIOs could greatly benefit from an IT governance solution that helps them enhance the effectiveness of their organization across the application life cycle."
The Compuware IT Governance offering will enable CIOs to:
--More easily and accurately quantify and measure the business value of technology investments across distributed and legacy architectures through a straightforward "dashboard" approach
--Bring IT governance to the development phase of the application life cycle, where most IT budgets are spent and 80 percent of defects are introduced
--Communicate effectively with line-of-business partners and other stakeholders
--Integrate business and IT cultures to foster better collaboration
"Compuware's geographic reach, strong sales infrastructure and brand recognition will allow us to more effectively meet the rising demand for IT governance solutions," said Gerry Smith, Changepoint President and CEO. "We're excited about the opportunity this presents for bringing our proven technology into broader markets."