Archive photo
Mercury to buy American Systinet
Despite recent troubles, Israeli software provider still going strong
Despite being ousted from the Nasdaq 100 index last week, Israeli software provider Mercury Interactive proves it is still alive and kicking. The company reported Monday it has signed an agreement to purchase American Systinet Corporation, a privately held company, for USD 105 million.
Systinet is a provider of service-oriented architecture (SOA) governance and lifecycle management software and services. According to Mercury, customers use Systinet technology to manage SOA business services and to build secure and reliable Web services.
The acquisition process is set to be completed during the first quarter of 2006, and Mercury has announced it expects the buy to affect the company's profits in financial reports for 2006 and 2007.
“We believe the combination of Mercury and Systinet will immediately position us as a leader in the high-growth SOA market,” Tony Zingale, Mercury's CEO said.
Options scandal hurts firm
Notably, Mercury's share was recently delisted from the Nasdaq 100 index, and transferred to the secondary Pink Sheets index, following an options scandal that was revealed in August 2005 and prompted an investigation by the U.S. Securities and Exchange Commission, as well as an internal probe.
Mercury has recently postponed the submission of its quarterly reports to Nasdaq, and later announced that its financial reports are not credible, and that it will need to redraft them before publishing them again.
Nasdaq's listing panel has granted Mercury two extensions to submit its reports, and when the firm failed to meet the deadlines, the panel recently decided to remove it from the index.
