Compuware has entered into agreement to acquire management software company Viasoft.
The software house, which has traditionally sold server based software testing and application management products to the mainframe world, has agreed to a cash buy of all outstanding shares of Viasoft's common stock for $9 per share.
Viasoft which started life 15 years ago as a mainframe maintenance company, moved into the millennium tools space four years ago to cash in on Year 2000 compliancy issues.
Last year Viasoft issued a profits warning and axed staff due to falling demand for its products.
Martin Brampton, analyst at Bloor Research, said: "There is a lot of potential for the transformation market beyond Year 2000. Many companies want to transform old systems which are tested and validated into Java and components. It is less expensive than rewriting applications."
A Compuware statement said Viasoft's ecommerce transformation product for IBM MVS Cobol applications complement Compuware's testing and implementation products.
Joseph Nathan, Compuware president and chief operating officer, said: "Acquiring Viasoft will accelerate work underway at Compuware to help our clients better manage maintenance backlogs and extend their legacy applications to take full advantage of ecommerce opportunities."
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