Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Embarcadero cancels proposed acquisition after Justice Department concern, (Nov 5, 2014)
Organizations Mentioned:CA, Inc. | Embarcadero Technologies, Inc. | U.S. Department of Justice
Embarcadero Technologies Inc. and CA Inc. this week terminated Embarcadero’s proposed acquisition of CA Inc.’s ERwin data modeling product suite after the U.S. Department of Justice (DOJ) expressed continuing concern about the transaction’s potential for anticompetitive effects, the DOJ has announced today.
Data modeling software is used to view and streamline enterprise data, centralize data management and reduce data redundancies. An increase in the price of data modeling products would likely result in significant harm to users of these tools, the DOJ said.
According to the DOJ, Embarcadero’s ER Studio products and CA’s ERwin have been particularly close competitors. By purchasing the ERwin Data Modeler, Embarcadero Technologies would have eliminated a vigorous competitor that has competed to provide expanded functionality and more affordable pricing in recent years.
Embarcadero Technologies Inc., based in San Francisco, California, is owned by private equity group Thoma Cressey Bravo and provides software to build, test, optimize, and manage application infrastructure and databases for large corporations and government agencies. CA Inc., based in Islandia, New York, provides software and other tools for managing networks, databases, applications, storage, security, and other systems.
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