Business technology optimization (BTO) software company Mercury Interactive Corporation (OTC Bulletin Board: MERQ) is to buy Systinet Corporation, a privately held company, for $105 million in cash.
Systinet provides service-oriented architecture (SOA) governance and lifecycle management software and services. Customers use Systinet technology to manage SOA business services and to build secure and reliable Web services. Mercury said that Systinet technology, when combined with Mercury BTO Enterprise offerings, would help enable customers to take a lifecycle approach to optimizing the quality, performance and availability of SOA business services.
Mercury CEO Tony Zingale said, "We believe the combination of Mercury and Systinet will immediately position us as a leader in the high-growth SOA market. Mercury continues to grow our BTO offerings to help customers optimize the business outcomes of their IT initiatives. Systinet's technology and deep expertise in SOA combined with Mercury's strong BTO market leadership introduces powerful product synergies and the ability to address a broader set of customer opportunities in the fast growing SOA market."
Mercury said it planned to leverage Systinet products to help customers mitigate the risk to business outcomes of SOA initiatives.
The acquisition is expected to close during the first quarter of 2006. It is expected to be dilutive to Mercury's earnings in 2006, and accretive in 2007.
Published by Globes [online], Israel business news - www.globes.co.il - on January 9, 2006