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Compuware Buys Gomez for $295 Million

Gomez, the Web application management vendor, will work with Compuware's portfolio of tools for managing the performance of on-premises applications, says IDG News Service

By Chris Kanaracus

Compuware said Wednesday it has agreed to acquire Web application management vendor Gomez for US$295 million. The transaction is expected to close in November.

Gomez's technology will work in concert with Compuware's portfolio of tools for managing the performance of on-premises applications, providing coverage "from the data center to the customer," the companies said in a statement.

Such capabilities are crucial in today's IT environments, Compuware President Bob Paul said during a conference call Wednesday.

For example, a retail banking transaction may begin with customers using an iPhone to connect with an online banking Web site, and end up spanning multiple third-party services, back-end databases, ISPs and mobile carriers, Paul said. "The complexity is staggering."

The acquisition will bolster Compuware's ability to compete with the likes of Hewlett-Packard, CA and BMC in application performance management. Those competitors offer only "narrow, keyhole views" into various areas, Paul claimed.

Compuware will also gain fresh footholds in many of the world's largest Web properties. Gomez has about 2,500 customers, including Google, Facebook, Yahoo and, according to its Web site.

The acquisition announcement follows steps Gomez had taken to prepare for an IPO.

The privately held vendor has 272 employees and is based in Lexington, Massachusetts. Compuware is not planning any significant personnel changes, according to a statement.

Gomez's current product road map will also "essentially remain unchanged," and the Gomez brand will be retained, although plans to integrate the vendors' offerings are afoot, Compuware said.

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Compuware to Acquire Gomez for $295 Million


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