On the announcement of the $495m acquisition on April 27, we questioned where the synergy lies between AttachmateWRQ and its predominantly legacy software business, and NetIQ, with its systems and applications performance management technology.
But in an interview with Computer Business Review, AttachmateWRQ’s David Bennett, VP of international operations, said: Some time ago we set out our strategy, and that strategy remains the same: we call it Extend, Manage and Secure. Our host access and integration business forms the Extend part, and NetIQ clearly fits into the Manage and Secure pieces.
Bennett noted that as well as its systems and applications management products, NetIQ has products that play in the security management and vulnerability management spaces. In March, AttachmateWRQ announced that it had acquired desktop software management and distribution capabilities with the acquisition of OnDemand Software.
Announced on the same day that NetIQ reported yet another loss, this time for its third quarter, AttachmateWRQ and NetIQ said that once the acquisition closes the combined entity will be renamed Attachmate-NetIQ. WRQ – a brand added to Attachmate last year after both companies were acquired and merged by an investment group led by Francisco Partners, Golden Gate Capital and Thoma Cressey Equity Partners – will be dropped.
After the acquisition and merger of WRQ with Attachmate the intention was always to move to a single company name over a period of time, said Bennett. The same applies to Attachmate-NetIQ, though because NetIQ is almost as big a company as Attachmate, we will keep the name NetIQ in the brand for a considerable period.
Together, AttachmateWRQ and NetIQ said they will comprise a $400m company, serving over 40,000 customers in over 60 countries, with near complete market penetration of the Global 10,000.
As a result of its increasing diversification, the combined Attachmate-NetIQ will inevitably be up against other broad systems management firms like CA, IBM, Compuware and HP. Yes, but IBM was our biggest competitor in host access, said Bennett, so we’re used to going up against competitors that are much larger than we are.
Bennett said he could not comment on whether there would be likely job cuts as a result of the acquisition – they appear almost certain since there will be administrative overlaps at the very least, and since NetIQ is loss-making – or whether NetIQ’s senior management is likely to stay on at AttachmateWRQ after the acquisition closes.