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CA acquires small services firm

CA acquires small services firm

Computer Associates (CA) announced last week that it is continuing its aggressive acquisition strat-egy in the services arena with the purchase of LDA Systems (LDA), an information management consulting organisation that specialises in client/server, mainframe, mid-range and Internet technologies.

All of LDA's 300 employees are joining CA. LDA has sustained an annual growth rate of 35 per cent over the last three years, according to CA. Financial terms of the deal were not disclosed.

CA attempted earlier this year to purchase Computer Sciences Corp (CSC), but the bid was rejected by CSC's corporate leadership and degenerated into an acrimonious war of words. CA let its offer expire in mid-March.

Smaller aquisitions

Since then, CA has pursued a strategy of growing its professional services staff through smaller acquisitions, in August announcing the purchase of ReaLogic, a consulting firm specialising in enterprise networking, application development and systems integration.

Now, CA's goal in the services area is "a billion dollars in revenue as soon as we can get there", said Chris Wagner, executive vice president of CA's Global Professional Services unit. If CA had been successful in buying CSC, the combined entity would have made up a $US11 billion company with 50,000 employees, "so we have set our sights high", Wagner said.

CA and LDA officials stressed LDA's experience in mid-range, Lotus Notes, and mainframe systems, with Wagner underscoring the fact that CA revenue in the mainframe arena has been strong during the last two quarters.

LDA has also done a lot of work supporting clients who want to install IBM AS/400 technology and tie it to the Internet, said LDA president Steve Sweetnich, at the announcement.


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