Opsware buys ex-Mercury exec's automation software start-up

Opsware enamored in part by acquisition iConclude's ITIL support

Opsware this week announced plans to acquire automation software start-up iConclude for about $30 million in a cash and stock transaction.

Opsware, maker of its own automation software for servers and networks, says it will close the deal sometime in May, and plans to integrate iConclude's OpsForce technology across Opsware's product portfolio. Founded in early 2005 by former Mercury Interactive executive Sunny Gupta, the vendor's technology fell into the category of run-book automation -- meaning it could automatically repair problems based on predefined scripts often manually put to use by IT administrators.

Opsware officials say the addition of iConclude will equip Opsware to provide IT automation and integrated change management across network, server and storage environments. According to the company, iConclude technology complements the existing Opsware suite, working to accelerate and simplify automation projects.

"Not only does iConclude's software make it easier for customers to automate the existing Opsware suite, it also orchestrates all of the other IT management tools they use, providing an unprecedented degree of efficiency and control," said Ben Horowitz, president and CEO of Opsware.

Opsware also said iConclude's inclusion of IT Infrastructure Library, or ITIL, best practices in its most recent release was compelling. By adding iConclude to the Opsware Automation Suite, Opsware officials say, customer can have help implementing product repair processes that align with the guidelines established in ITIL.

Expected to close in May, the transaction is for approximately $30 million in cash and approximately 3.39 million of Opsware common stock. Opsware says it intends to retain nearly all of iConclude's employees.

Copyright © 2007 IDG Communications, Inc.

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