Precise Software Buying WQuinnPrecise Software Solutions
, which optimizes business through application performance management, announced that it has acquired W.Quinn Associates Inc. (WQuinn) for $35 million in a combination of $20 million in cash with the balance in Precise Ordinary Shares.
WQuinn can earn additional consideration based on achieving certain revenue and operating income targets. The merger will be accounted for as a purchase transaction.
WQuinn, a privately held company based in Reston, Va., is a storage resource and performance management solutions provider that currently supports the Microsoft Windows NT and Windows 2000 platforms.
WQuinn's products are used by over 3,500 companies in 50 countries. WQuinn recently signed a strategic OEM relationship with Microsoft Corp., which has licensed WQuinn's technology and embedded it within Microsoft's Server Appliance Kit. This kit is the foundation software for server appliances sold by Microsoft's OEM partners such as Dell, HP and Compaq, IBM, and NEC. Microsoft, a key customer of WQuinn, has standardized its storage resource and performance management on WQuinn's flagship product, StorageCentral SRM, for use throughout Microsoft's corporate data centers worldwide.
WQuinn's products strongly complement Precise's application performance management solutions across the IT infrastructure. WQuinn's patented technology for real-time, proactive storage utilization and performance improvement helps customers identify both the symptom and root causes of performance degradation.
Precise expects the merger will leverage the reselling and OEM channels of both organizations. Precise will add Microsoft as a strategic OEM partner and resellers such as Dell, EDS, PowerQuest, and Sunbelt Software, to Precise's already significant strategic distribution partnerships with EMC, HP, SAP, and Amdocs.
The acquisition of WQuinn will be financially accretive to Precise beginning in the third quarter of 2001, Precise officials said. As a result, the company is raising its Q3 2001 revenue expectations by $400,000 to $14.1 million, and is improving its operating loss expectations to approximately ($100,000).