CA Technologies Acquires Arcot Systems for $200 Million in Cash
The security space is hot folks! The acquisitions of security related companies continues this morning with CA Technologies announcing that it has signed a definitive agreement to acquire Arcot Systems, Inc., a provider of authentication and fraud prevention solutions. CA will pay $200 million in cash for the privately-held company.
The acquisition of Arcot will add fraud prevention and authentication to CA Technologies Identity and Access Management (IAM) offerings.
Arcot’s solutions – delivered as cloud services or deployed on premises – helps businesses prevent fraudulent transactions and reduce risk, support regulatory compliance and secure business transactions.
The Advanced Authentication market, a segment of the overall IAM sector, is expected to grow at low double digits over the next four years.
Arcot’s business features a subscription-based model, with almost 90 percent of revenue recurring and nearly 100 percent customer retention rates. Arcot has been cash-flow positive since the second quarter of 2009, which ended June 30, 2009.
Arcot was founded in 1997 and has approximately 165 employees that will become part of the Security business at CA Technologies. The transaction is expected to close by the end of CA Technologies second fiscal quarter, ending September 30, 2010, and is subject to certain regulatory approvals and customary closing conditions.