Mercury Interactive acquires Systinet for $105mn

01/10/06 - newratings.com

NEW YORK, January 10 (newratings.com) - Global major in business technology optimization (BTO) software, Mercury Interactive Corp (MERQ), Monday announced that it has signed a definitive agreement to acquire privately held service-oriented architecture (SOA) vendor Systinet Corp for $105 million in cash.

"We believe the combination of Mercury and Systinet will immediately position us as a leader in the high-growth SOA market," Mountain View, California-based Mercury Interactive’s chief executive officer Tony Zingale said. "Systinet's technology and deep expertise in SOA combined with Mercury's strong BTO market leadership introduces powerful product synergies and the ability to address a broader set of customer opportunities in the fast growing SOA market," Tony Zingale added.

The acquisition of Burlington, Massachusetts-based Systinet comes not more than a week after Mercury Interactive was de-listed from the Nasdaq stock market, with the ongoing internal investigation into incorrect accounting by top executives of the company. The purchase transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the first quarter of 2006. Mercury Interactive expects the acquisition to be dilutive to its earnings this year and accretive in 2007.