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By | Chris Mellor 9th July 2014 09:28

Software giant CA Technologies dumps arcserve biz

Private equity buyout

CA Technologies has sold its arcserve data protection business to Marlin Equity Partners for an undisclosed sum.

This is meant to enable CA to focus on its core technologies and get back to growth with software-as-a-service products.

The arcserve product is possibly being discontinued because it will cost too much to develop, market and support compared to products made by mainstream industry legacy products, pushy second tier players like Assigra and upstarts like Veeam.

So CA has pulled the eject lever.

The exit from the data protection business mirrors Syncsort's exit, which also went for a private-equity-funded buyout of its data protection business in late 2013. That has become Catalogic Software and it is getting into the copy data reduction and management business.

The future for arcserve is warm and fuzzy words from Marlin, with VP Michael Anderson saying: "We are committed to providing the strategic and operational support necessary to create long-term value for arcserve and look forward to working closely with CA Technologies through the transition."

It seems clear that arcserve needs a transfusion of cash and IP to develop. How that transfusion will be accomplished is unclear.

The transaction is a short one, expected to close in the next quarter of 2014, CA's second quarter of fiscal year 2015. ®

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