Mercury has bought service-oriented architecture (SOA) vendor Systinet for $105 million in cash.
The news comes just a week after Mercury was delisted from the Nasdaq Stock Market last week alongside an internal investigation over incorrect accounting by top executives.
The buy will add Systinet's software for SOA governance and management to Mercury's tools for IT governance and application management. Mercury will initially operate Systinet as a subsidiary except for the sales divisions which will begin working together immediately. The founder and CEO of Systinet will also stay with the company.
The purchase shows Mercury's determination to move forward despite ongoing challenges, claims CEO Tony Zingale. An internal investigation into the company's accounting showed a pattern of incorrect recording of stock-option grants.
According to the investigation, Mercury's previous CEO, chief financial officer and general counsel all knew of the inaccurate reporting and profited from it. In November, the three executives resigned from the company. Mercury was eventually delisted by Nasdaq because it failed to file financial reports on time.
Systinet's Registry allows people to publish and manage business services, and its Policy Manager tool lets companies streamline policy creation. Customers include Amazon.com, The Hartford Financial Services Group and the Defense Information Systems Agency, which is using Systinet tools across the Defence Department to catalog and manage Web services created by the US Air Force, Army, Navy and other agencies.
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