On January 5, 2009, CA (formerly Computer Associates) announced its intention to acquire Orchestria. This report assesses the transaction.

Much of the information presented here is not publicly available. Our off-the-record sources in reports such as these include stockholders, present and past company employees, present and past board members, and people who have participated in confidential meetings with the vendors concerned.

Report 808. 17 pages.

Table of Contents

Executive Summary
About Orchestria
     Technology Summary
     Company History
     Strengths
     Obstacles
     Decision to Seek a Buyer
     Revenue, Profit and Loss History
     External Funding History
About CA
     CA’s Traditional Product and Acquisition Strategy
     CA’s New Product and Acquisition Strategy
     CA Groups That Will Benefit from the Acquisition
The Transaction
     Terms of the Deal
     Comparable Transactions
     Selected CA Acquisitions
     Primary Valuation Considerations
     Acquisition Sale and Negotiation History
Orchestria Stockholders’ Perspective
     ROI for Stockholders
     Achieving a Higher Valuation: Lessons Learned
     What Sale Timing Would Have Been Ideal?
Results of the Deal for CA
     Benefits for CA Identity and Access Management
     Benefits for CA Information Governance
     Challenges Arising for CA
     Orphan Technology
Implications and Recommendations
     For Orchestria’s Customers
     For Orchestria’s Competitors
     For CA’s Customers
     For CA’s Competitors
     For CA’s Stockholders
Additional Information
Important Information--Terms of Use