After two and a half years of intense negotiations, Veritas Software Corp. (Nasdaq: VRTS) finally completed its acquisition of application performance management vendor Precise Software Solutions Inc. (Nasdaq: PRSE) today, handing over $609 million to the companys shareholders (see Veritas Eats Precise ).
The deal, which was originally priced at $537 million, called for the software giant to pay approximately $400 million in cash, along with 7.4 million Veritas shares worth $209 million (see Veritas Gets Precise). Veritas's stock, which has leaped nearly 85 percent since the beginning of the year, was up 2.1 percent this afternoon, trading at $29.17 a share.
Precise, which has experienced 22 consecutive quarters of revenue growth, with sales totaling $76 million last year, produces software for application performance monitoring and storage resource management.
Todays acquisition, along with Veritass already completed acquisition of automated server provisioning software vendor Jareva Technologies, is part of the companys strategy to move up the stack and away from being a pure storage play (see Veritas Moves up the Stack). While Veritas already has plenty of offerings aimed at identifying and solving resource and performance problems at the storage layer, adding Precises software will allow its customers to solve the same problems at the application level, the company says.
For instance, by adding Precise's application performance management software to its product portfolio, Veritas could identify slowdowns in database traffic and pinpoint the root causes, such as an overloaded server. This kind of centralized control over IT resources is getting more popular, Veritas CEO Gary Bloom said on a conference call this morning.
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