BMC to Acquire Numara Software - Analyst Blog
31 Gennaio 2012 - 6:52PM
Zacks
The Software-as-a-Service (SaaS) major BMC
Software. (BMC) recently announced that it is set to
acquire Numara Software, a provider of integrated IT management
solutions for medium-sized businesses. The transaction is expected
to be closed by BMC’s fiscal fourth quarter, which ends on March
31. However, the terms of the deal were not disclosed.
Post acquisition, Numara will offer different BMC products like
FootPrints and Track-It!, which also complement BMC’s existing
portfolio. We believe that this strategic move on the company’s
part will supplement BMC’s Software-as-a-Service (SaaS) business,
and also provide BMC the access to more than 13,000 service and
asset management solution providers that enable IT organizations to
improve the services they offer end users.
BMC has taken the acquisition route for growth. Earlier this
month, BMC acquired I/O Concepts, a leader in the ioEnterprise line
of mainframe console security, automation and consolidation
solutions.
The acquisition is expected to allow BMC to improve the
productivity of its customers by reducing their staff requirements
and also enhancing systems availability for its Main View
Solutions.
Previously, the company also acquired Phurnace Software, an
automation software developer that helps to reduce the cost,
complexity and risk of deploying and configuring Java-based
applications on physical, virtual and cloud computing
environments.
Acquisitions may help the company to diversify its businesses
but growth remains impacted by weaker expenditure from different
government and private customers. Moreover, concern over IT
spending growth may have a dampening effect. The recent European
economic turmoil will also remain a headwind for the next few
quarters.
BMC is focusing on acquisitions after reporting modest second
quarter results. The company is expected to see the negative impact
of currency on total revenue and bookings. Moreover, no real growth
in deal activity and low business prospects in the European region
are factors working against it.
Moreover, we are a bit apprehensive about growing competition
from big players such as International Business Machines
Inc. (IBM), Hewlett-Packard Company
(HPQ), EMC Corp. (EMC) and CA
Inc. (CA), which bundle hardware and software
offerings.
BMC currently holds a Zacks #4 Rank, which implies a short-term
Sell rating.
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