Business & Finance
News
6/13/2003
04:18 PM
50%
50%

Mercury Buys Kintana: Start Of A Spending Spree?

Mercury Interactive Corp.'s acquisition of IT-governance software vendor Kintana Inc. last week could be just the beginning for the company, which happens to be one of the few with healthy revenue growth and profits in the IT sector.

The purchase--for $125 million cash and $100 million stock--comes a month after Mercury bought J2EE diagnostic tools developer Performant Inc. for $22.5 million cash. Mercury, a busi- ness-technology optimization software vendor, still has $1.3 billion in cash and isn't finished, says chief marketing officer Christopher Lochhead. "We're looking to grow our business through internal products and strategic partnerships," Lochhead says. "We're not looking at this as a cost-reduction move but as continuing to invest in people and products. It's about accelerating and expanding our position."

Mercury's software helps businesses implement and manage software to get the best business value. With Kintana, Mercury broadens its portfolio with software that lets companies manage IT projects and the processes and workforces associated with them.

Companies are grappling with too many disappointing IT investments, which has changed the definition of innovation, says Gartner analyst Theresa Lanowitz. "The new innovation is implementation: 'How do we get everything we've purchased to work together?'" And that, Lanowitz says, is what Mercury does well.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 Digital Issue, April 2015
The 27th annual ranking of the leading US users of business technology
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of April 19, 2015.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.