CA Technologies to acquire Layer 7, Nolio

The company revealed news of its latest acquisitions this morning at its CA World conference in Las Vegas. This year, it's all about enterprise applications.


IT management company CA Technologies announced this morning that it will acquire API management and security firm Layer 7 and application automation company Nolio.

Terms were not disclosed. CA executive vice president Peter Griffiths made the announcement today during the company's CA World conference in Las Vegas, Nevada.

With regard to privately-held Layer 7, CA Technologies sees the company's technology as complementary to the DevOps products it currently offers in its Identity and Access Management suite, used for cloud, mobile and composite business applications. The value proposition: accelerate delivery (and thus increase profitability) by making better use of existing assets and governing new initiatives, such as big data. Oh, and enforce those SLAs.

"We use APIs every day, whether accessing flight data from our mobile device, using Google Maps from a hotel website or making payments online," CA general manager Mike Denning said. "There are billions of API calls a day and that number is going to increase with the proliferation of smart devices, ranging from vehicles, meters, TVs and other devices, as they start interacting over APIs. Without API security and management, thousands of business services are vulnerable to disruption."


Over seven years, the company raised nearly $20 million from GrowthWorks Capital, BDC Venture Capital and Shoreline Venture Management.

As for the Israel-based startup Nolio, whose acquisition was hinted at late last month by local publications, CA Technologies sees value in its ASAP platform, which allows for centralized management of application service workflow design, testing and deployment and promises up to a 90 percent reduction in the time it takes to release an application.

In the company's own words:

It's difficult enough to sequence application release activities for a single application, in a simple data center environment. Multiply this by the volume of changes and frequency, applications tiers and environments along with distributed, heterogeneous infrastructure (including physical, virtual and cloud servers) and you get a problem that quickly becomes complex, error prone and unmanageable. Nolio Application Release Operations Suite simplifies release tasks and mitigates the risk of faulty application change and deployment errors - turning complex, manual operations into reliable, repeatable and error-free processes.

(In this way, the deal mirrors IBM's acquisition of UrbanCode , which was also announced today.)

The startup raised about $5 million from Cedar Fund, Blumberg Capital and Iris Capital.

CA has had a steady string of related acquisitions in recent years: it acquired network management company NetQoS in 2009; Israeli service level management startup Oblicore, cloud computing leader 3Tera, service desk firm Nimsoft, virtualization management company Hyperformix and cloud security firm Arcot Systems in 2010; and Texas-based enterprise application company Itko in 2011.