16 December 2003 Enterprise management software leader BMC Software is to acquire the assets of Magic Solutions from Network Associates for approximately $47 million.

The sale of the unit is the latest phase of a lengthy restructuring programme at Network Associates, whose sales and earnings have fallen steadily over the past year in spite of the strong expansion of its core market, security software.

Magic Solutions provides packages such as Magic Service Desk and Magic Help DeskIQ software and related solutions for small- to medium-sized enterprises (SMEs). Its assets will become part of BMC’s Remedy business unit, which currently sells software to larger enterprise and mid-tier customers. Remedy manages and automates internal and external service and support processes.

BMC said that it did not anticipate significant overlap between its 7000 Remedy customers and Magic’s 4000 customers. BMC’s strategy is to expand into the SME market.

Bob Beauchamp, president and CEO of BMC, said BMC will be acquiring “a highly profitable business that generates positive cashflow and strong revenue per headcount”. BMC said it expects the acquisition to be accretive to its earnings early next year.

Network Associates chairman and CEO George Samenuk his company intends to focus on its primary security business.

BMC said it expected to hire the 200 “talented employees” currently working on Magic as part of the acquisition. They will remain in the Dallas area, where BMC also has an office. The deal is expected to close in 60 days.