CA sets record straight on 'no more acquisitions' stance

Computer Associates has clarified the resolute 'no more acquisitions' statement delivered by CEO Sanjay Kumar at this week's CA World - admitting that it would still consider individual purchases if they offered the company a clear strategic advantage.

Despite Kumar's words many believe CA will once again have to get back on the acquisition trail.

This may be especially true in the security sector, where industry experts are expecting to see far more consolidation over the coming months - and CA appears to accept that fact, with Simon Perry, divisional vice president of security strategy at CA, suggesting that Kumar was referring only to major acquisitions "over $20m".

Perry told silicon.com: "The number of companies providing security products today is around 350. That's an incredible number and I think it has to decrease.

"If you look at all the anti-virus providers it just isn't sustainable."

Most obviously in the firing line are some of the smaller firms who are already failing to keep their heads above water.

"Some of these smaller companies talk about their market share in terms of point-nought-something per cent," said Perry, highlighting just how over-crowded the security market has become.

Kumar also believes consolidation is on the cards for the industry as a whole. In his keynote address he said: "In our industry there are too many products from too many companies. Those who do not consolidate are not going to survive."

But Kumar also insisted his company's acquisition years are in the past - his comments, he claimed, were aimed more at those firms who are now 'playing catch-up' in CA's wake.

But Perry admitted this 'no acquisition' stance is not an immovable object - especially in his field.

"This doesn't mean we won't make small strategic acquisitions," he said. "Sanjay would say, as the head of a publicly-listed company, 'never say never'."