It’s a story that has been 10 years in the making. Husband and wife team Joel Trammel and Dr. Cathy Fulton could foresee that internet traffic would continue to grow substantially, data centers would consolidate, and there would be network congestion. As that happened, enterprises would be keenly interested in performance management. Thus, NetQoS was born.
Recently, NetQoS was named to the Inc. 5000, ranking #2081 with $56.5M in trailing revenue. Being acquired for $200M in an all cash deal is certainly a healthy mutiplier on their revenue. One of the most notable, and largest acquisitions for an Austin-based IT company was the 1996 acquisition of Tivoli by IBM for $743M back in 1996. This deal isn’t too far off, especially considering that Tivoli had gone public, so IBM had to pay a premium to tender public shares.
News releases say that pretty much all the company’s 260 employees will continue to remain with the company. I’m sure a few functions may centralize like accounting, and of course PR and marketing. There won’t be the corporate cutting like they’re experiencing at Vignette right now.
We’re awaiting a return call from company representatives to hear more about the Austin impact.