CA to acquire Automic in EUR600M deal, updates preliminary FY17 guidance
CA Technologies announced it has signed a definitive agreement to acquire Automic Holding GmbH. The transaction, valued at approximately EUR600M, net of cash and cash equivalents acquired, has been unanimously approved by both boards, and is expected to close in Q4r of CA's fiscal 2017. Headquartered in Vienna, Austria, Automic has approximately 600 employees across Europe, North America and Asia. With Automic, CA will add new cloud-enabled automation and orchestration capabilities across the portfolio and increase its reach into the European market. CA will add Automic's automation and orchestration capabilities to its portfolio to give customers options that address their IT operations and DevOps needs on-premise, in the cloud and hybrid cloud environments. Founded in 1985, Automic has offices in Vienna, Paris, Asia Pacific Japan, and Bellevue, Washington and serves customers in the energy, financial services, healthcare, manufacturing, retail and telecommunications sectors. Foros acted as financial advisor to CA Technologies on this acquisition. Assuming the transaction closes in early January, CA's preliminary expectation compared with its previous fiscal year 2017 guidance, is that the acquisition will: Add one-half percentage point of revenue, both as reported and in constant currency; Adversely affect GAAP and non-GAAP total company operating margin by 1 percentage point and will primarily impact the Enterprise Solutions segment; and be modestly dilutive to cash flow from operations and GAAP and non-GAAP diluted earnings per share, both as reported and in constant currency.