Business Impact

Compuware to buy Gomez Inc. for $295 million cash

DETROIT (AP) – Compuware Corp., whose software improves the performance of computer programs used by companies to run their operations, said Wednesday it is acquiring Gomez Inc. for $295 million in cash.

The deal, which is expected to close in November, gives Compuware a company that manages, tests and measures the performance of corporate Web sites and mobile applications.

Compuware Chief Operating Officer Bob Paul said Compuware will have a well-rounded suite of services for corporate computer systems as well as on the Web and mobile, which is key as businesses move critical applications onto the Internet.

“Businesses are experiencing a revolution that demands they move their most important applications beyond the firewall,” he said in a conference call with analysts.

He said it’s critical for companies to manage both internal and Web and mobile applications well for a seamless experience for customers.

It can be a complicated task. A bank customer who wants to check her account balance using her iPhone is served by several companies. Content delivery networks from several locations bring the bank’s Web page to her phone. She logs in, and an identity verification company takes the information, sends it to the bank’s data center, and retrieves the account data. The information travels from the cell tower to the phone company’s network, to an Internet service provider and the Internet backbone and back.

“All applications in our eyes are ultimately moving to leverage the Internet,” said Jaime Ellertson, Gomez’s CEO, during the analysts’ conference call.

Compuware said the acquisition is expected to dilute earnings for fiscal 2010 due to an amortization charge.

Privately held Gomez, based in Lexington, Mass., employs 272 people worldwide. Gomez executives and the rest of the employees are expected to stay with Compuware. In 2008, Gomez recorded revenue of $47 million. Its clients include Google Inc. and Facebook.

Detroit-based Compuware serves 46 of the top 50 Fortune 500 companies. The stock was up a dime to $7.28 in midday trading.

Copyright 2009 The Associated Press.

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