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Compuware Acquires DynaTrace Software for $256 Million

Compuware has acquired DynaTrace software, expanding the company’s linecard of application performance management solutions. Compuware paid $256 million in cash for the privately-held company in a deal that closed on July 1. “Organizations today depend on the rapid development and delivery of high-performing applications to drive revenues, customer satisfaction and brand,” said Compuware Chief Executive […]

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Jennifer Lawinski

Jul 6, 2011

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Compuware has acquired DynaTrace software, expanding the company’s linecard of application performance management solutions.

Compuware paid $256 million in cash for the privately-held company in a deal that closed on July 1.

“Organizations today depend on the rapid development and delivery of high-performing applications to drive revenues, customer satisfaction and brand,” said Compuware Chief Executive Officer Bob Paul, in a statement. “To meet these demands effectively, IT organizations must have visibility into the performance of every transaction, from development, through test and in production. Together, Compuware and dynaTrace APM solutions allow IT to meet business demands for performance and agility through unbeatable insight into the user experience – whether in cloud, complex or traditional environments.”

DynaTrace’s PurePath solutions help developers optimize software performance throughout the product development lifecycle in on-premise, cloud or hybrid computing environments. Compuware plans to integrate the PurePath solutions with its Gomez and Vantage APM product sets.

The acquisition gives channel partners a new set of products to approach customers, Steve Tack, CTO, Compuware APM, told Channel Insider.

"By bringing together the Compuware and DynaTrace capabilities into one offering, they will then have something in their arsenal that will either differentiate themselves from others," Tack said.

"We both attacked the partner market from different points of entry… and now with the combined offering we’ll be able to cross pollinate into those different partners and help them address different offerings or different needs in a unique way," he said. "We’re very excited and very bullish on this opportunity. This combined offering we believe will allow our partners and customers to do things they weren’t able to do before."

Tack said Compuware will work with its partners to incorporate the DynaTrace solutions into their offerings. For DynaTrace, the move will expand their partner network beyond its current scope.

"We have been selling product through partners for going on four years now, most heavily in Europe and more recently in North America as well. We see this opportunity with Compuware as one to expand that
partner network dramatically and globally. Our footprint now is really just on either side of the Atlantic," said John Van Siclen, CEO of DynaTrace, on a conference call.

"Substantially all of" DynaTrace’s 180 employees, including the leadership team, are expected to keep their jobs, Compuware said Wednesday.

Compuware Acquires DynaTrace Software for $256 Million

Jennifer Lawinski

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