Boole & Babbage Inc. late yesterday announced a definitive agreement to acquire competitor Maxm Systems Corp. in a deal valued at about $25 million.
The acquisition, expected to be finalized early in January 1997, will increase the San Jose, Calif., systems management supplier's presence in the fast-growing market for enterprise management systems, according to Paul Newton, president and CEO of publicly traded Boole & Babbage.
"This is what the financial analysts call a 'market share play,' " said Newton. "[Maxm's] Max Enterprise product addressed the same market as our Command Post. We gained critical mass and much greater market share."
Both vendors supply availability or event management products that span larger systems.
The greater market presence should put Boole & Babbage on the "short list" of large enterprises that are looking to partner with management software suppliers, Newton said. Heading that list already are such vendors as Computer Associates International Inc. with its Unicenter offerings and IBM/Tivoli with its Tivoli Management Environment 10.
Boole & Babbage pledged to maintain Max Enterprise-Maxm's core product-and to enhance it with peripheral functions. The acquisition of the privately held $20 million Vienna, Va., firm will be accounted for as a pooling of interests.
Boole & Babbage plans to detail its road map for integrating the two product lines in the first quarter of next year.