Sources inform ''Globes'' that Symantec Inc. (Nasdaq:SYMC) is considering selling the Israeli activity of Precise Software Solutions, which has about 200 employees. Symantec acquired Precise Software as part of its acquisition of Veritas in 2005. The buyer’s identity is unclear, but it might one of the major enterprise software houses interested in improving its position in the enterprise IT systems performance market. Precise Software develops software that locates and monitors bottlenecks in enterprise IT systems.
Precise Software was an Israeli high-tech powerhouse, which went public on Nasdaq in 2000 at a company value of $300 million, and held a secondary offering at a value of $600 million shortly afterwards. Veritas acquired the company two years later at a company value of $540 million. Symantec’s acquisition of Veritas is considered problematic for both companies. Throughout these mergers and acquisitions, Precise Software remained as an independent unit.
IT performance has become a mainstream business in recent years. IDC estimates the market at $4 billion. Almost all IT giants are active in the field, and the likelihood of Hewlett Packard Co. (NYSE:HPQ), IBM Corp. (NYSE:IBM) BMC Corporation (NYSE:BMC), Computer Associates Inc. (NYSE:CA), and EMC Corporation (NYSE:EMC) making more acquisitions in this sector cannot be ruled out. EMC acquired Israeli start-up Proactivity a year ago.
Symantec said in response to reports about the sale of Precise Software that “there has been no such decision.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 14, 2007
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