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Compuware announced Monday that it has completed the buyout of Web optimization company Gomez, bringing aboard the acquired firm's 272 employees into a new Web Performance division.
As an application and testing firm, Compuware provides enterprise customers with tools to optimize the performance of their server-based applications. Gomez helps its customers monitor and manage the performance of their Web sites and Web-based applications.
Compuware believes that the addition of Gomez, first announced in October, will allow it to provide a wider range of services to help customers test and optimize both in-house and Internet-based applications.
The deal has also garnered praise from some industry analysts. A recent IDC report "Compuware Expands SaaS Portfolio With Gomez Acquisition" sees the Gomez/Compuware marriage as a good match with plenty of upside.
"We're thrilled to welcome the Gomez team to Compuware," said Compuware President and Chief Operating Officer Bob Paul in a statement. "Together, Compuware and Gomez will--through a solution that features rapid time-to-value, ease of use and real-time answers--give IT and business executives the optimal application performance they need to drive brand image, customer loyalty and revenue."
Compuware said it will keep the Gomez brand, technology, and business model but look to integrate its new purchase in such areas as sales and marketing. Gomez CEO Jaime Ellertson will remain and serve as president of Gomez, the Web Performance division of Compuware.
Compuware expects the acquisition to add to operations this year.
Application management and testing firm Compuware on Wednesday said it will buy Web optimization company Gomez for $295 million in cash.
Compuware provides software and services to help its customers optimize the performance of their in-house applications. It typically delivers tools to manage server-based applications in the enterprise market. In recent years, Compuware has also generated sales by offering its tools via software as a service (SaaS), where it hosts or delivers software for its customers over the Internet.
Gomez helps businesses monitor and manage the performance of their Web sites and Web-based applications. The company looks at issues such as cross-browser compatibility and Web load balancing to ensure that a customer's Web site is fully optimized.
Like Compuware, Gomez also uses the SaaS model to deliver its product to the customer. With the addition of Gomez, Compuware said it expects to become the world's leading SaaS infrastructure management provider.
"Together, Compuware and Gomez provide the industry's only unified application performance management solution, spanning the enterprise and Internet," said Compuware President and Chief Operating Officer Bob Paul. "For business and IT executives who are moving more business-critical applications onto the Internet, Compuware can now offer unified visibility, isolation, and resolution of application performance problems from the data center to the customer."
Based in Detroit, Compuware has about 23,000 customers worldwide. It brought in sales of $1.1 billion for fiscal 2009. The company's 4,275 employees work out of 84 offices scattered across different countries.
With more than 2,500 customers around the world, Massachusetts-based Gomez saw revenue of $47 million in fiscal 2008. "Substantially all" of the privately held company's 272 employees, including the leadership team, are expected to remain with the organization, Compuware said.
"Compuware's financial strength, its R&D horsepower, and its geographic reach will benefit both our employees and our customers," said Richard Brekka, Gomez's chairman.
The deal is expected to close in November.
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