ca_swoops_in_on_orchestria_to_connect_196708 - 6 January...

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Analyst: Steve Coplan / Nick Selby Sector: Enterprise Software CA Inc (NYSE: CA) has announced plans to acquire anti-data-leakage (ADL)/data-loss-prevention (DLP) and message monitoring vendor Orchestria , motivated by what it sees as the requirement for a single, unified framework for controlling who has access to what data, and how it is used. CA intends to continue to sell stand-alone DLP products, but the driving motivation is to build a product that integrates DLP capabilities with its identity- and access-management (IAM) infrastructure. While the move may support CA's strategy, it was also an opportunistic acquisition, since we believe that Orchestria was running short of financial oxygen and had been seeking a trade sale for some time. CA, of course, takes issue with this contention. Regardless of the character of the acquisition, the purchase of DLP technology provides CA with the raw material to extend its ability to not only control who gets access to what in the context of individual pieces of data, but also to impose constraints on what can happen to that data once it has been legitimately accessed. Orchestria may have been more amenable than some rivals, but that doesn't undermine what is a clear, well-founded strategic push to manage identity and data policies in a comprehensive framework. The acquisition also serves as an opening volley – not only for CA's traditional competitors in the IAM market, but also for incumbent security vendors (think Symantec (Nasdaq: SYMC) and maybe even RSA, EMC's (NYSE: EMC) security division). CA may be new to securing data, but it's hoping that its IAM expertise will serve as its ace in the hole. Deal details CA would not disclose the financial details of the transaction. Orchestria claimed 2007 revenue of $27m, but we believe that customer growth slowed over the course of 2008. In fact, we would estimate that 2008 revenue was far closer to $20m than $30m, not least given the company's exposure to the financial services vertical (Orchestria has said it was ACQUIRER CA Inc TARGET Orchestria SUBSECTOR Identity and access management DEAL VALUE Not disclosed DATE ANNOUNCED January 5, 2009 CLOSING DATE February 5, 2009 ADVISERS Updata Advisors (Orchestria) CA swoops in on Orchestria to connect the dots between data and identity 6 January 2009 – Deal Analysis
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broadening its customer base, but, still). We speculate that the deal valuation was roughly $50m. Orchestria was advised by Updata Advisors ; CA did not use an outside adviser. CA points out that it was looking for a vendor that had proven itself in the context of large, enterprise-wide deployments (in order to complement its own IAM sales focus on large enterprises), and Orchestria had made much progress in integrating its policy engine with Lightweight Directory Access Protocol (LDAP) identity-management directories. The acquisition of Orchestria is both the third acquisition and IAM-related deal for CA in the space of almost three months, following its pickups of
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ca_swoops_in_on_orchestria_to_connect_196708 - 6 January...

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