Computer Associates 2006 Annual Report Download - page 52

In December 2005, we acquired Control F-1 Corporation (Control F-1) for a total purchase price of approximately
$14 million. Control F-1 was a privately held provider of support automation solutions that automatically prevent,
detect and repair end-user computer problems before they disrupt critical IT services. CA markets the Control-F1
solutions as stand-alone products and has incorporated them into our portfolio of Business Service Optimization
solutions, which help customers reduce costs, improve service levels, and better align IT with the business.
In December 2005, we sold our wholly-owned subsidiary MultiGen-Paradigm, Inc. (MultiGen) to Parallax Capital
Partners. MultiGen was a provider of real-time, end-to-end 3D solutions for visualizations, simulations and training
applications used for both civilian and government purposes. As a result of the sale, we recognized a gain on the
disposal of $3 million, net of taxes, which is classified in discontinued operations in the Consolidated Statements of
Operations.
In November 2005, we announced an agreement with Garnett & Helfrich Capital, a private equity firm, to create an
independent corporate entity, Ingres Corporation. We divested our Ingres open source database unit into Ingres
Corporation, in which Garnett & Helfrich Capital is the majority shareholder. As a result of this transaction, we
recorded a non-cash pre-tax gain of approximately $7 million in the third quarter of fiscal year 2006.
In October 2005, we completed the acquisition of iLumin Software Services, Inc. (iLumin), a privately held
provider of enterprise message management and archiving software, for a total purchase price of approximately
$48 million. iLumin’s Assentor product line has been added to our BrightStor solutions.
In July 2005, we acquired Niku Corporation (Niku), a provider of information technology management and
governance solutions, for a total purchase price of approximately $345 million, or approximately $282 million net
of acquired cash and marketable securities. Niku’s primary software product, Clarity IT-MG, is an integrated suite
that spans and strengthens the IT governance offering of our Business Service Optimization business unit to the full
IT life cycle, from investment selection, to execution and delivery of initiatives, to results assessment.
In June 2005, we acquired Concord Communications, Inc. (Concord), a provider of network service management
software solutions, for a total purchase price of approximately $359 million, or approximately $283 million net of
acquired cash and marketable securities. Concord is a provider of infrastructure software principally in the areas of
network health, performance, and fault management. We have made Concord’s eHealth and Spectrum software
available both as independent products and as integrated components of our Unicenter product portfolio in our
Enterprise Systems Management business unit. In connection with the acquisition, we assumed $86 million in
3% convertible senior notes due 2023. In accordance with the notes’ terms, we redeemed (for cash) the notes in full
in July 2005.
In November 2004, we completed the acquisition of Netegrity, Inc. (Netegrity), a provider of business security
software solutions in the area of access and identity management, for a total purchase price of approximately
$455 million, or approximately $358 million net of acquired cash and marketable securities. Netegrity was a
provider of business security software, principally in the areas of identity and access management, and we have
made Netegrity’s identity and access management solutions available both as independent products and as
integrated components of our eTrust Identity and Access Management Suite in our Security Management
business unit.
In August 2004, we acquired PestPatrol, Inc. (PestPatrol), a privately held provider of anti-spyware and security
solutions, for a total purchase price of approximately $40 million. The products acquired in this transaction were
integrated into our eTrust Threat Management software product portfolio in our Security Management business
unit. This portfolio protects organizations from diverse Internet dangers such as viruses, spam, and inappropriate
use of the Web by employees.
In March 2004, we sold our approximate 90% interest in ACCPAC International, Inc. (ACCPAC). ACCPAC
provided accounting, customer relationship management, human resources, warehouse management,
manufacturing, electronic data interchange, and point-of-sale software for small and medium-sized businesses.
Our net proceeds totaled $104 million for all of our outstanding equity interests in ACCPAC, including options and
change of control payments for certain ACCPAC officers and managers. We received approximately $90 million of
the net proceeds in fiscal year 2004 and the remainder in fiscal year 2005. As a result of the sale, we realized a gain,
net of taxes, of approximately $60 million in fiscal year 2004. In the second quarter of fiscal year 2005, we recorded
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