Compuware Buys Proxima Technology for $31M

Compuware Corporation (NASDAQ: CPWR) announced on January 2 that it has entered into an agreement to purchase privately held Proxima Technology of Denver, Colorado, for $31 million in an all-cash deal. Proxima Technology's flagship product, Centauri Business Service Manager, will become a key component of the Compuware Vantage management suite, providing business service management and service level management functionality previously missing from the company's offerings.

For Proxima's part, Compuware's ownership will provide significant new opportunities for Centauri. Putting the might of Compuware's sales and marketing force behind Centauri will not only allow it to penetrate new markets and customers, but it will also enable Compuware to penetrate further into large system integrators and outsourcers like EDS and IBM Global Services, which are key Proxima customers.

Centauri could also be leveraged inside of Vantage as a centralized integration point for the Vantage products, providing dashboard, reporting and notification functionality across the product line. Centauri could also ease the integration between Vantage and other products in the Compuware portfolio, including Changepoint, not to mention third-party vendor products.

Overall, the acquisition is a good move for both companies: Compuware was the last large systems management company to add service management to its portfolio, which will allow it to compete on a more level playing field against the "big four" (IBM, HP, CA and BMC). Proxima gains the might of a $1.2B software company, and of course its employees will enjoy a much anticipated "liquidity event."

If Compuware plays its cards right, it could leverage Centauri in a number of key ways, further establishing Vantage as a systems management force to be reckoned with.