(CPWR) Compuware Acquires dynaTrace

Compuware Corporation (CPWR) recently announced that the company acquired Boston-based rival dynaTrace software for $256 million.

Headquartered in Detroit, Michigan, Compuware Corporation (CPWR) provides software products and professional services to many of the largest users of information systems across the world.

Privately-held, dynaTrace employs 180 people and generated revenues of $26 million in the last twelve months. The company is expected to add approximately revenues between $35 million and $45 million to the Compuware’s top-line in FY12. In FY13, Compuware expects a contribution of $100 million to the top-line.

Due to purchase accounting, management expects the acquisition will negatively the bottom-line by three cents.  The acquisition is expected to be accretive to the bottom-line by four cents in FY13.

Management at Compuware stated that with growing competition, organizations depend a lot on the rapid development and delivery of high performing applications to drive revenues, customer satisfaction and brand.

dynaTrace is a leader in application performance management (APM). With its patented PurePath technology, the company offers continuous APM system on the market, transforming how applications are built, tested and managed.

Application Performance Management continues to gain traction and drive growth for the company. Most companies are investing in strategic web-based applications due to sustained top-line revenue growth, improved market share and brand awareness.

Management stated that the Compuware and dynaTrace APM solutions will allow IT to meet business demands for performance and agility through unmatched user experience.

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