CA World, Las Vegas – Strong rumours have been doing the rounds that CA Technologies could be an acquisition target – particularly by IBM – but the company's CEO has dismissed these for what they are – sheer speculation.
Quizzed at a press Q&A on the number of mergers and acquisitions occurring in the software industry and what CA Technologies' role in this could be in the future, Bill McCracken denied any knowledge of a potential suitor. "You guys would know better than me," he says. "This industry is always merging and there are lots of acquisitions going on. There's speculation all the time."
Having said that, McCracken admitted that there were benefits to be had in mergers.
"There are advantages for companies to merge," he says. "We've acquired companies that are generally smaller and that's a part of our strategy so that we can integrate them quickly and bring products to the market place.
"But in terms of future mergers and acquisitions, I can't predict what will happen," he says.
McCracken also clarified recent lay-offs at the company.
"We needed to restructure about two months ago and reset our skills in line with our strategy," he explains. "As you'll recall, we acquired five companies in the last six months which brought new skills into the company and also shifted a lot of our development resources into other areas. So there was a realignment of skills.
"We're hiring now and this year will actually have a higher number of employees than before the lay-offs," he says. "It was simply a shifting in our skills base to match our strategy."