Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Compuware buys Gomez for $295 million; Bolsters SaaS footprint

By | October 7, 2009, 6:47am PDT

Summary: Compuware said it will acquire Gomez, which monitors Web applications, for $295 million in cash. The move is designed to create an application monitoring portfolio across the enterprise and Internet.

Compuware on Wednesday said it will acquire Gomez, which monitors Web applications, for $295 million in cash.

At first glance, the deal seems like an odd fit. After all, Compuware’s list of products includes IT portfolio management, mainframe and monitoring applications. Gomez is focused on Web load and performance monitoring as well as analytics. However, Gomez does work in data center consolidation, mobile Web deployment and cloud computing.

The deal, which is expected to close in November, is a fit because “business and IT executives are moving more business-critical applications onto the Internet” and the combination of Compuware and Gomez can offer “unified visibility, isolation and resolution of application performance problems,” according to a Compuware statement.

Compuware plans to take Gomez’s software as a service portfolio and blend it with its own to become a large infrastructure as a service player. In a presentation, Compuware said the acquisition will help its customers have full visibility across enterprise and Internet applications.

Most of the 272 people employed by Gomez, including the management team, are expected to remain with Compuware.

Here’s the unified view that Compuware is pitching in a presentation detailing the deal:

And how it sees the combination stacking up among competitors:

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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A crappy company with a crappy vision
stevevmaloney 8th Oct 2009
So long as Karmanos is running the show, (and he is no matter what Bob Paul thinks), this company will suffer. In Karmanos you have a narcissistic egotist whose vision of computing architecture is rooted in the 1980's. Even before this Gomez acquisition there was no cohesive strategy for their three product segments as witnessed by the fact they have three different sales groups that don?t talk to one-another. So what does Gomez add to this bastard product mix? Nothing but confusion and distraction. This company is so mired in the past I?m surprised they even know how to spell ?internet?. They?re held together by baling wire. Without their recurrent mainframe maintenance revenue this company would have disappeared into the dust bin of software companies long, long ago.

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