Micromuse Buys Calvin Alexander Networking

In a combination of technical talents that will provide the ability to manage complex network infrastructures more efficiently, Micromuse Inc. (San Francisco) agreed to acquire New York City-based Calvin Alexander Networking Inc. (CAN), a privately-held company that develops network auto-discovery technology. Under terms of the agreement, Micromuse will issue approximately $42 million worth of its common stock to acquire CAN. Certain agreements have been made to promote the retention and motivation of CAN employees. A portion of the consideration for the transaction is subject to a one-year lock-up agreement and a one-year price guarantee.

Large corporations as well as Internet service providers, telcos, and cable TV operators are rapidly expanding their voice and Internet infrastructures to meet growing demand. As a result, there is a need for software that accurately discovers network topology in real-world networks with the ability to compensate for misconfiguration, unmanaged devices, and moves/adds/changes as they occur. During network failures or service disruptions, the ability to accurately trace physical communications paths is essential in helping network operations centers quickly isolate and repair problems. CAN offers the Micromuse NETCOOL product line unique core technology to solve these common problems.

The acquisition provides Micromuse with auto discovery and root-cause analysis technology—capabilities that form the foundation for automated network management systems that the company will introduce to broaden the network management market. CAN has developed methodology for discovering dynamic multilayer network topologies. The modular software combines physical topology to the port level, with Layer 2 and Layer 3 logical topology, providing accurate path information for routed and switched networks, including virtual LANs and virtual private networks.

The company previously had worked with Micromuse to extend the range of technologies the software is able to discover. It was this collaboration the eventually led to the acquisition, according to Michael Wood, chairman and CEO of CAN.