CA Technologies announced it has signed a definitive agreement to acquire privately-held Arcot Systems, a provider of advanced authentication and fraud prevention solutions, in an all-cash transaction valued at USD 200 million.        
 
Arcot’s solutions – delivered as cloud services or deployed on premises – is designed to help prevent fraudulent transactions for about one million online credit card transactions each day.  

“Arcot brings to CA Technologies a strong business in fraud prevention and unique capabilities in advanced authentication using a software-only approach,” said Dave Hansen, general manager for the Security business at CA Technologies. “This acquisition adds industry-leading technology that extends the breadth and depth of our strong IAM portfolio and gives our customers more first-class options for securing their Web-based business.”
 
The acquisition builds on CA Technologies’ cloud security strategy, providing the on-ramp to accelerate its delivery of IAM solutions as a comprehensive service from the cloud. 
  
“Identity is a critical area for security whether you are talking about in-house or the cloud, and with 120 million identities verified by our solutions today, we bring a strong, solid recurring revenue base as well as sources of new growth opportunities for CA Technologies,” said Ram Varadarajan, President and CEO, Arcot Systems.  

The all-cash transaction is expected to close by the end of CA Technologies second fiscal quarter, ending September 30, 2010, and is subject to certain regulatory approvals and customary closing conditions.