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CA Inks Deal to Buy BlazeMeter for an Undisclosed Amount

Zacks

Information technology (IT) management software company, CA Inc. CA recently announced that it has inked a deal to acquire BlazeMeter, a provider of next-generation, cloud based performance testing solutions. The terms of the agreement were kept under wraps. Nonetheless, the deal is expected to close by the end of this year.

Founded in 2011, BlazeMeter helps organizations to run large-scale performance and load tests quickly, easily and inexpensively. Fully compatible with Apache JMeter, its solutions allow clients to run huge load tests in the cloud. We believe the association will strengthen the cloud computing business of CA and make it a complete service provider.

Slow testing speed proves to be a hindrance in getting applications released quickly. With this acquisition, the company expects to utilize the testing solutions provided by BlazeMeter and expand its DevOps portfolio. BlazeMeter solutions help companies to speed up innovation, improve performance and respond effectively to the evolving competitive market and customer needs. BlazeMeter testing solutions aid companies to manage their software development lifecycle by aligning it with strategic business objectives. Post-acquisition, BlazeMeter will be integrated into CA’s DevOps and Management Cloud business.

According to Ayman Sayed, president and chief product officer of CA Technologies, “The acquisition will reinforce our leadership position in continuous testing, and our efforts to democratize performance testing as organizations accelerate their DevOps journey to drive speed and quality in the delivery of new software updates and innovations.”

Further, the acquisition will broaden CA Technologies’ portfolio and enable it to better serve its patrons. Apart from this, we believe the company will get a larger customer base, which will boost its top- and bottom-line performance.

We consider that with enhanced capabilities, which come from the acquisition of BlazeMeter, CA Technologies will be able to strongly compete with other industry rivals like International Business Machines IBM and Oracle Corp. ORCL.

We remain encouraged by CA Technologies’ acquisition strategy, which has enhanced its IT management, software and services portfolio. Moreover, we believe that the breadth of its products and the increased efficiency offered by them will attract customers across sectors, lending stability to its business model.

CA has also adopted a “go to market” sales strategy. This brings together all the commercial functions including sales, marketing, brand management, pricing and consumer insight. The integration of the marketing functions helps to lower costs, thereby improving the bottom line.

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Currently, CA Technologies carries a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Cirrus Logic Inc. CRUS, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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