BY
MARK HARRINGTON
Newsday Staff Writer
January 30, 2007
As CA Inc. today undertakes a major product rebranding effort that will
see a gradual phaseout of such staple software names as Unicenter,
BrightStor and eTrust, the company is once again the subject of
unconfirmed speculation that it is a takeover target.
CA yesterday declined to comment on a report that two private equity
firms, Texas Pacific Group and Silver Lake Partners, "have surfaced as
possible buyers," according to TheDeal.com news site. Spokesmen for the
private equity firms yesterday declined to comment.
Several people familiar with CA and the private equity firms yesterday
said they were skeptical of the report.
"There's always been talk [of possible suitors] but there is no specific
buzz" now, said an investment industry source who declined to be
identified. In 2004, Newsday reported that CA had been shopped around to
several large rivals, including Hewlett-Packard Co., but no offers
materialized.
But investment banker Gary Lutin, who runs a CA shareholder forum, said
given CA's share price hovering in the $25 range, "It's virtually
inconceivable that somebody isn't thinking about" a CA buyout. And while
an offer doesn't appear to be on the table, Lutin added, "I expect the
board would be receptive to any reasonable offers, both as a
responsibility to shareholders and a dignified exit for themselves."
Yesterday, CA spokesman Dan Kaferle said the company does not comment on
"rumor and speculation." He said its competitive, financial and product
positions "are strong."
But Kaferle confirmed the company is moving to a "master brand" strategy.
The effort, according to a source, will see subbrands such as Unicenter
and eTrust replaced over more than a year's time by the CA brand. In
addition, newly acquired names such as eHealth and PestPatrol also will be
phased out.
The source indicated the transition for some products would take place
over the next 18 months. In addition to playing up the CA brand, products
also will include a word or phrase that describes their function.
Accordingly, a product today known as eTrust Directory will become CA
Directory.
The strategy as it has been communicated to CA partners is designed to
make it easier for CA customers to identify and buy the software, and more
quickly recognize its value.
"Research showed customers weren't associating the sub-brands with CA and
the products we offer," CA spokesman Bob Gordon said last night.
CA over more than a quarter century has acquired more than 100 companies
and annexed or developed more than a thousand products, and top executives
have long bemoaned the task of corralling that unwieldy portfolio into a
cohesive marketing message.
Still, master-branding the products also carries risk. CA, and the
predecessor companies that owned the products, spent untold millions
advertising and marketing the brands.
Names such as Unicenter and eTrust have deep recognition in the industry.
CA has acknowledged as much in communications with partners, saying the
transition will take place over the natural product development cycles.
The company has said it is being "careful to transition the equity of the
more well-known names" to the CA brand.
