On the conference call announcing Computer Associates' purchase of Concord Communications, the first question was about the cost ($330 million plus $20 million in debt). Why, a financial analyst asked, was CA paying a 70 percent premium over Concord's stock price, particularly given that Concord just said it will miss its first-quarter numbers?
The answer, although straight-forward, reveals a lot about the "new CA" and the management team running the show.
With the acquisition, CA can fill out its Unicenter line with network management tools. It also gains significant number of people with networking skills, particularly in … Read more