Micromuse Finds NETWORK HARMONi

Micromuse , which makes Netcool brand software to monitor the performance of IT systems, Wednesday said it will acquire NETWORK HARMONi (NHI) out of San Diego, Calif. for $23 million in cash.

The combination of the two companies’ software platforms is expected to help customers manage distributed Windows, Linux, and UNIX servers, Web servers, databases, and other business applications.

The acquisition was spawned from a business partnership that began in April 2002, when San Francisco-based Micromuse and NHI entered into an OEM reseller agreement.

The companies say the integration should be a snap considering NHI’s HARMONi suite of intelligent agents are the core data collection technology inside Micromuse’s Netcool/System Service Monitors (Netcool/SSMs) and Netcool/Application Service Monitors (Netcool/ASMs).

Micromuse says it NAI will help it build its empire and fend off giant rivals like BMC and Computer Associates . Currently, Micromuse boasts 90 customers including marquee partnerships with AT&T, BT, Cable & Wireless, Charles Schwab, Deutsche Telekom, Digex, EarthLink, GE Appliances, ITC DeltaCom, J.P. Morgan Chase, T-Mobile and Verizon.

In addition to its library of intelligent HARMONi agents, Micromuse will inherit NHI’s OpCenter product, an IT management and problem resolution system designed for mid-sized businesses. Micromuse says it will also assume several pending patent applications that have already been filed by NHI.

The deal also includes the naming NHI’s president, CEO, and Chief Technology Officer Craig Farrell as Micromuse’s CTO.

“Craig’s excellent knowledge and understanding of complex infrastructures and his vast expertise in application, system, and network management make him a tremendous asset to Micromuse,” said Micromuse chairman and CEO Lloyd Carney. “As a member of our executive management team, he will be responsible for delivering innovative solutions for realtime IT infrastructure management.”

At last count, Micromuse supported a staff of 660. NHI employs approximately 40 people in San Diego, California and Perth, Australia. No time frame was given for the completion of the deal.