Mercury Interactive Takes a Gulp of Freshwater
Mercury Interactive Corporation announced it will acquire Freshwater Software, a privately held company based in Boulder, Colorado. Freshwater Software develops and markets global monitoring products and services used by system administrators in operations organizations to gauge application performance and availability.
Under terms of the merger agreement, Mercury Interactive paid $147 million in cash for all of Freshwater Software's outstanding capital stock. In addition, Mercury Interactive assumed Freshwater Software's stock option plan. The merger is expected to be accounted for as a purchase transaction.
The companies plan to develop a fully integrated solution using Mercury Interactive and Freshwater Software products that will allow IT and operations groups to benefit from a combined view of application performance data, enabling them to collaborate and effectively deliver superior e-business performance.
Freshwater Software will operate as a wholly owned subsidiary under Mercury Interactive's Application Performance Management (APM) business unit. Four of the five co-founders are expected to remain with the company as well as current employees. Donna Auguste, the current president and CEO of Freshwater Software, will leave the company after a short transition period to pursue philanthropic interests.
For more information, visit www.freshwater.com, or www.mercuryinteractive.com.