3/28/2006 Houston-- BMC Software announced that it
plans to buy Israel-based Identify Software for $150 million in cash. The deal
to purchase the diagnostic software maker should close by June, the Houston
company said.
The purchase of Identify, which develops software to detect and repair problems with business applications, should add to the company's transaction management products says BMC president and CEO Bob Beauchamp. The acquisition follows the purchase of Remedy assets in 2002; IT Masters, Marimba, Magic Solutions, and ASA Knowledge and Calendra last year.
Identify has operational headquarters in New York, but Beauchamp said he did not foresee any cuts in work force because of the acquisition. Identify has 500 customers spanning multiple industries, with typical customers of midsize to large organizations. Now BMC is able to extend the company's reach to customers the company traditionally has not sold to.
While BMC Software has improved profitability, it will be hard to keep expanding profits in the face of weak software license bookings, writes Todd Weller, analyst with Stifel Nicolaus.
