CA Technologies buys Automic for 600 million euros, expands into business process automation

CA Technologies buys automation company Automic in a deal that gives it more of a cloud footprint, scale in Europe, and expansion into business processes.

CA Technologies said it is acquiring business process automation company Automic for 600 million Euro in a deal that will aim to automate applications to development to work.

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The deal, worth $636.5 million, is interesting on multiple fronts. For starters, CA firmly entrenches itself in the trend of automation. Automic's software started out automating IT and moved into business processes.

Automic, based in Vienna, has 600 employees globally.

For CA, Automic provides a cloud automation and orchestration platform as well as a broader European presence. CA plans to add Automic to its lineup of automation tools. Automic will also give CA more heft in analytics.

Last year, Automic launched a business automation platform called Continuous Everything that enabled enterprises to automate business functions and workflows. Continuous Everything was designed to allow business users to automate processes without engineers and has modules for service, developers, and operations.

Automic's products touch everything from development to replacing labor to big data and enterprise resource planning automation.

CA's product portfolio goes like this:

ca-portfolio-strategy.png

Automic will add the following to the mix:

  • DevOps;
  • SAP automation;
  • Oracle automation;
  • Finance automation;
  • Data automation;
  • Workload automation;
  • Service orchestrations;
  • Cloud automation.

CA said the deal will add a one-half percentage point of revenue growth and cut operating margin by 1 percent. Earnings will also take an undisclosed hit assuming the Automic deal closes in January.

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