Hewlett-Packard (HP) has signed a definitive agreement to acquire IT management software and services company Mercury Interactive for around $4.5bn.
According to HP the deal, which is expected to close in the fourth quarter 2006, will increase the size of its software business to more than $2bn in annual revenue.
It will bring together the strength of HP OpenView systems, network and IT service management software with Mercury’s strength in application management, application delivery, IT governance and service-oriented architecture governance, according to the vendor.
Mark Hurd, chief executive of HP said: “Today, we are combining two market-leading businesses to create the most powerful management software portfolio in the industry. Together, they will help customers cut their IT costs, speed the delivery of new services and drive profitable growth at HP. We expect this important acquisition to deliver significant value for our shareholders."
Thomas Hogan, senior vice president, software at HP said: “"Combining our HP OpenView offerings with Mercury's BTO Enterprise offerings will integrate the many building blocks of enterprise IT management into one complete solution for the entire IT lifecycle, from planning through to deployment and operations. Mercury is a results-driven, high-performing company with outstanding people that will be a strong addition to HP."
HP expects to commence the tender offer promptly and the merger is expected to close in the fourth quarter of calendar year 2006.
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