Compuware Buys Gomez For $295 Million In Cash

Compuware is acquiring Web app experience management solution provider Gomez for $295 million in cash. The deal is expected to close in November of 2009, following government approvals and the satisfaction of other customary conditions.

Gomez employs 272 people around the world, most of which will be staying with Compuware after the transaction’s close, including its executive management team. Gomez was founded in 2001 and is headquartered in Lexington, Massachusetts. The company reported $47 million in revenues in fiscal year 2008.

The company basically provides on-demand web application experience management solutions, helping businesses ensure quality web experiences for their customers. Businesses use Gomez to test their web applications while in development and to monitor their web applications after deployment. More than 2,500 customers around the world are said to use the company’s on-demand services to improve the quality of the web experience in order to increase their revenue from web applications while at the same time reducing their operating costs. Some of the more familiar names on its customer reference list are Adobe, Google, Facebook, Amazon, Yahoo, Expedia and Monster.

You can find more information about the acquisition here, including a non-embeddable video of Compuware President and COO Bob Paul. Most important to know for existing Gomez customers and partners is that there are no changes or interruptions of service planned for now, and Gomez will continue to operate as usual for the foreseeable future.

Another sign that M&A activity in tech is definitely picking up again.

Update: Mass High Tech offers more details about the acquisition. The journal reports that Gomez filed for an IPO last May. Financial reports filed since then indicate the company reached profitability for the first time in the first half of 2009, with earnings of $26.6 million in revenue according to the SEC filing.

Update 2: more info about Gomez’ funding history:

After raising $7 million in early-stage capital from individual investors, Gomez raised its first institutional round of $28.5 million in February 2000 and had two additional rounds of $9.3 million in October 2000 and $5.6 million in February 2001. Dolphin Equity Partners participated with Bank Boston, lead investor, and other institutional investors in the original financings. In November 2001, the existing shareholders decided to not invest any more and Dolphin led a recap of $3.5 million in November 2001 whereby Dolphin became the controlling shareholder. In 2002 and 2003, Gomez purchased for stock Porivo (owned by Aurora Funds) and WebPerform (owned by Doughty Hanson and ABS Ventures). In 2002 Gomez raised $5 million from insiders (led by Dolphin) and in 2003 raised $8.6 million (led by AdAstra).

In total, Gomez raised $66 million since inception.
Compuware to Acquire Gomez