Avocent to acquire LANDesk

The move is being cast as providing the market with "always-on" infrastructure management and security solutions, drawn from a basket of hardware and software that can be used to control the diverse IT assets used across large organizations.

Huntsville, Alabama-based Avocent, which is said to have 50% of the market for key-video-mouse, KVM, switches and serial consoles for data-center management, seems intent on broadening its market footprint. It hinted last month, after its $90m acquisition of the console and power-management vendor Cyclades Corp, that it would consider dipping again into the $200m cash on its balance sheet to further its advance into "technologies that are in adjacent spaces."

The company's core market of KVM switching technology allows systems-administrators to run Windows servers from outside the computer room, either locally using analog KVM, or remotely over an IP connection with digital KVM options. It competes in the sector with Raritan Computer Inc.

LANDesk has been around since 2002 when it was spun out from Intel Corp with certain desktop systems-management software assets and the financial backing of venture capitalist firms Vector Capital and vSpring Capital.

The Salt Lake City, Utah-based software vendor has since developed its software to meet a prevailing demand for management of IT resources, particularly in regard to keeping applications and operating system software up to date. The route to market is through partners including resellers, ISVs such as Front Range, systems integrators like IBM, Siemens, and Unisys, and OEM partners such as Acer, Clear Cube, and Intel.

The company's LANDesk Management Suite pretty much provides all the tools needed to manage desktops servers, and mobile devices including handheld devices such as PDAs. It is accessed via a single console and incorporates asset auto-discovery features, regarded as one of the strengths of the product, which identify all devices with an IP address such as PCs, laptops, printers, routers, and switches. An inventory is also created of all software installed on each device that is discovered.

The other notable features are the software distribution facility which can be applied to operating system deployment and migration or to patch management using an associated LANDesk Security Suite. LANDesk believed its chief competitor was Microsoft and the SMS systems management platform.

The definitive acquisition agreement is expected to close within 75 days, and comprises $200m in stock, another $200m in cash, and $16m in assumed options. The value of the deal may rise by up to $60m if LANDesk meets certain financial targets, the company said.

The two businesses already have a working relationship with LANDesk being a charter member of the Avocent Alliance Program for ISVs which was launched in March 2005. Once the deal is complete, it is expected that LANDesk will continue to operate from its existing facilities as an independent division of Avocent.