CA Technologies buys Arcot for $200 million

CA Technologies has signed a definitive agreement to acquire privately-held Arcot Systems, which provides authentication and fraud prevention software.

The acquisition, which is claimed to be an all-cash transaction valued at $200 million, will, according to CA technologies,”add technology for fraud prevention and advanced authentication” to the company’s portfolio.

Arcot’s services are provided as cloud services or deployed on premises to help prevent fraudulent transactions for about one million online credit card transactions each day, it says. By combining Arcot’s technology with C&A’s SiteMinder it reckons customers will enjoy reduced risk, as well as supporting regulatory compliance and more secure business transactions. Basically the acquisition is an effort for it to buff up its own cloud security. All 165 employees at Arcot will become part of CA’s security wing.

In addition to flogging C&A’s cloud computing, it reckons that the acquisition is nothing short of, we quote, “compelling.” This is because advanced authentication is set to grow in the region of double digits over the next four years or so. Of course C&A rightly saw dollar signs and realised that’s another place where the dosh is at – it’s an investment. Not make or break but make and make.

As usual the corporates are trying to dress up acquisitions as benefiting the customer first and foremost. It says, the kind of suits who need to use C&A and Arcot’s combined tech will find the cross selling opportunities useful.

The transaction is expected to close by the end of CA Technologies’ second fiscal quarter at the end of this September. As is always the case with these things it needs to go through all the regulatory approvals and closing conditions.

*EyeSee – Corporate pseudspeak of the day is awarded with flying colours to CA. Try saying this as fast as you can, three times in a row:  “The acquisition builds on CA Technologies cloud security strategy, providing the on-ramp to accelerate its delivery of IAM solutions as a comprehensive service from the cloud. The CA Technologies cloud security strategy is a three-fold approach: enable organizations to extend existing on-premises IAM systems to support cloud applications and services; provide IAM technology to cloud providers to secure their services – whether public, private or hybrid; and enable IAM services from the cloud.”