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CA buys Arcot for $200 mn

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CIOL Bureau
New Update

MUMBAI, INDIA: CA Technologies announced it has signed a definitive agreement to acquire privately-held Arcot Systems, Inc., a player in providing advanced authentication and fraud prevention solutions through on premises software or cloud services, in an all-cash transaction valued at $200 million.

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Arcot employees are primarily located in two locations, Sunnyvale, California, and Bangalore in India. The employees will remain in their current locations through the remainder of CA Technologies FY 11 - which ends March 31, 2011, said a press release.

The letter of intent was signed on August 28, 2010 and is expected to close in CA's second fiscal quarter ending September 30, 2010, subject to regulatory review.

The acquisition of Arcot adds visionary technology for fraud prevention and advanced authentication to CA Technologies leading Identity and Access Management (IAM) offerings.

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Arcot’s solutions - delivered as cloud services or deployed on premises - help prevent fraudulent transactions for about one million online credit card transactions each day, the release said.

In addition, by combining Arcot’s technology with CA Technologies' CA SiteMinder portfolio, the company will provide advanced capabilities to help customers further reduce risk, support regulatory compliance and confidently secure business transactions.

“Arcot brings to CA Technologies a strong business in fraud prevention and unique capabilities in advanced authentication using a software-only approach,” said Dave Hansen, general manager for the Security business at CA Technologies.

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The acquisition builds on CA Technologies' cloud security strategy, providing the on-ramp to accelerate its delivery of IAM solutions as a comprehensive service from the cloud.

The all-cash transaction is expected to be dilutive in fiscal 2011 to CA Technologies GAAP earnings per share and slightly accretive to non-GAAP earnings per share.

Arcot was founded in 1997.

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