BMC buys Network Associate’s ‘Magic’

BANGALORE: Enterprise management firm, BMC Software, Inc., has decided to acquire the assets of Magic Solutions from Network Associates for approximately $47 million in cash. Magic Solutions provides help desk software and related solutions targeted at small to mid-sized organizations.

The acquisition will increase BMC Software’s reach to small and mid-market organizations, as Magic has more than 4,000 customers using its service desk solutions. Expected to close within 60 days, the acquisition will add approximately 200 Magic Solutions employees to BMC Software. Magic Solutions’ assets, which include Magic Service Desk and Magic Help Desk, will become part of BMC Software’s Remedy business unit. This includes a 31-member team in Bangalore engaged in research and development. BMC Software also has an offshore development center in Pune, employing close to 200 professionals.

"As the economy offers positive signals for growth, vendors of consolidated IT service management technologies will look for acquisition opportunities to expand their presence in the marketplace," said Kris Brittain, research director at Gartner. "Enterprises should anticipate more consolidations as vendors improve their market penetration, from small to enterprise levels, and build on their industry expertise."

"Customers of all sizes need the flexibility to adapt their IT solutions on the fly, and the scalability to expand their solution as their business grows, or as their needs change," said Jim Grant, vice president and general manager of BMC Software’s ‘Remedy’ business unit. "Magic Service Desk and Magic Help Desk customers will have more options to meet their business needs today and in the future with the suite of products from Magic Solutions, Remedy, and BMC Software."

Remedy’s position as the industry-leading IT Service Management solutions provider, will benefit Magic Service Desk and Magic Help Desk customers by providing best-in-class solutions with an integrated service management approach, and by offering end-to-end IT Service Management solutions capable of expanding with their business. Small to mid-sized companies will be able to leverage their service desk and help desk solutions as a step towards complete Business Service Management (BSM).

BMC Software's BSM strategy enables customers to change the way they do business — to begin managing IT from a business perspective. Using BSM solutions, customers can understand and predict the impact of technology changes on the business, and conversely, understand how changes in the business impact the IT infrastructure.

"In addition to allowing BMC Software to expand its leadership position in the IT Service Management market, acquiring Magic Solutions’ assets is a financially attractive transaction that is consistent with our disciplined approach to acquisitions," said Jeff Hawn, senior vice president of operations for BMC Software.

"Magic Solutions is a highly profitable business with positive cash flow. This transaction is expected to accrete BMC Software earnings early in the next fiscal year."

Network Associates is a publicly traded company. The Magic Solutions division of Network Associates is located in Plano, Texas, with satellite offices in Canada, Europe, and India. The division provides service management solutions designed to automate complex business processes for small- and mid- sized companies. The customizable interface of Magic Solutions provides the flexibility to integrate into business processes. It can be used out of the box, with standard best practices, or the interface can be easily modified to meet specific business requirements.

"Our decision to sell Magic Solutions’ assets is based on what we feel will best benefit our customers and shareholders," said George Samenuk, chairman and CEO of Network Associates. "This transaction will expand the offerings for Magic Solutions’ customers, allow for continual high level of customer support, and reinforce Network Associates’ focus on network and system security solutions."