CA Technologies (CA) to Acquire Arcot Systems Inc. for $200 Million

August 30, 2010, 12:14 PM

CA Technologies (Nasdaq: CA) announced on Monday that it has agreed to acquire Arcot Systems Inc, maker of authentication and anti-fraud software, for $200 Million.

Dave Hansen, General Manager for the Security business at CA Technologies, said in a statement. “Arcot brings to CA Technologies a strong business in fraud prevention and unique capabilities in advanced authentication using a software-only approach,”  “This acquisition adds industry-leading technology that extends the breadth and depth of our strong IAM portfolio and gives our customers more first-class options for securing their Web-based business.”

Arcot Systems, which was founded in 1997,  helps prevent fraudulent transactions for about one million internet credit card transactions daily, the company provides its software through its own hosted servers.

Ram Varadarajan, President and CEO of Arcot ,said in a statement.”Identity is a critical area for security whether you’re talking about in-house or the cloud, and with 120 million identities verified by our solutions today, we bring a strong, solid recurring revenue base as well as sources of new growth opportunities for CA Technologies,”

Arcot’s operations and 165 employees will join CA Technologies.

Shares of CA Technologies were down 16 cents to $18.14.

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Tags: arcot systems inc, ca technologies, Nasdaq