CA Technologies has signed a definitive agreement to acquire Arcot Systems in order to strengthen its identity and access management (IAM) offerings.
The deal, an all-cash transaction valued at $200 million, will allow CA Technologies to enhance its CA SiteMinder portfolio with advanced capabilities to help customers further reduce risk, support regulatory compliance and secure business transactions.
The transaction is expected to close by the end of September 2010 and is subject to certain regulatory approvals and customary closing conditions. Arcot's operations and its approximately 165 employees will become part of the security business at CA Technologies.
Dave Hansen, general manager for the security business at CA Technologies, said: “This acquisition adds industry-leading technology that extends the breadth and depth of our strong IAM portfolio and gives our customers more first-class options for securing their web-based business.”
Ram Varadarajan, president and CEO of Arcot Systems, said: “Identity is a critical area for security whether you're talking about in-house or the cloud, and with 120 million identities verified by our solutions today, we bring a strong, solid recurring revenue base as well as sources of new growth opportunities for CA Technologies.
“Arcot's strong established knowledge and expertise in core security and fraud prevention technology will offer robust capabilities to our numerous shared customers, particularly in the financial industry.”