Compuware solidifies its position in the application performance management software space with the acquisition of dynaTrace, maker of the PurePath APM system.
announced its $256 million acquisition
in a move to solidify
its position in the application performance management software market.
Compuware officials said the
acquisition closed July 1. dynaTrace, with its patented PurePath
technology, offers a continuous APM system that transforms how applications are
built, tested and managed, the company said. Moreover, hundreds of companies
including Zappos, SAS, Macy's, BBVA and Thomson Reuters rely on dynaTrace technology
to drive better business results by optimizing performance, accelerating time
to market for new releases, reducing application-management costs, and bringing
business and IT closer together, Compuware officials said.
The dynaTrace PurePath
technology enables the continuous tracing of an organization's transactions,
across widely distributed and complex environments, the company said.
depend on the rapid development and delivery of high-performing applications to
drive revenues, customer satisfaction and brand," Compuware CEO Bob Paul
said in a statement. "To meet these demands effectively, IT organizations
must have visibility into the performance of every transaction, from development,
through test and production. Together, Compuware and dynaTrace APM solutions
allow IT to meet business demands for performance and agility through
unbeatable insight into the user experience-whether in cloud, complex or
Headquartered in suburban
Boston, dynaTrace employs 180 people around the world. Essentially all of these
employees, including the leadership team, are expected to remain with
Compuware, the company said.
Compuware said dynaTrace has
a 92 percent win rate and a five-year compound annual growth rate of 125
percent because its PurePath technology solves the problem of optimizing
application performance in a different and better way, said Steve Tack, chief technology
officer for Compuware's APM solutions during a press conference regarding the
With this acquisition, "Compuware
is taking the dominant position in the application performance management
market," Tack said.
"The APM market is
undergoing a transformation; old tools simply can't meet the competitive
requirements of modern applications," John Van Siclen, CEO of dynaTrace, said
in a statement. "Compuware sees the same market shift and is committed to
building next-generation APM solutions that bring customers greater value, with
less effort, faster than ever before. We're excited to be a part of the
Compuware team, which will allow us to meet and increase the skyrocketing
demand for dynaTrace solutions."
dynaTrace was founded by
Bernd Greifeneder, Sok-kheng Tang and Hubert Gerstmeyer in 2005. Ben Nye at
Bain Capital Ventures invested in dynaTrace at its
founding, and Salil Deshpande of Bay Partners joined the company's board
in 2008. Pacific Crest Securities served as the advisor to dynaTrace on this