Contact: Kathy Keating Gillian Farquhar
Concord Communications, Inc. Greenough Communications Group
kkeating@concord.com gillian@greenoughcom.com
508-486-4632 (o) 617-275-6514 (o)
508-904-1203 (m) 617-694-7335 (m)
CONCORD TO ACQUIRE TECHNOLOGIES; SETS PLAN
TO REDEFINE IT MANAGEMENT LANDSCAPE
Integration of netViz data-driven visualization software and Tavve root cause
analysis and discovery technology to enrich eHealth(R) Suite
MARLBORO, MASS. -- JULY 15, 2003 -- Concord Communications, Inc. (Nasdaq: CCRD)
today announced that is has signed a definitive agreement to acquire netViz
Corporation. netViz's software enables users to visualize business processes and
allows them to map relationships within the supporting technology infrastructure
through data-driven icons. Additionally, Concord has licensed Tavve's root cause
analysis and discovery of layer 2 and 3 network topology as part of its
strategic initiative to build upon Concord's leadership position in optimizing
application availability and performance across networks and systems.
The integration of these technologies, with Concord's flagship product, the
eHealth Suite, will fundamentally redefine the IT management landscape by
providing a new, more automated means of application service optimization.
Concord's new roadmap will enable enterprises and service providers to employ
data-driven icons to visualize and take action on the critical relationships
between business processes, application services, and network and system
infrastructures. This competitive differentiator will allow customers to measure
the performance and availability of application services, map the dependencies
between business processes, and manage the complete application service.
Integrating netViz and Tavve technologies will further increase the eHealth
Suite's value proposition by capturing the business context of information and
delivering IT knowledge while ensuring a low total cost of ownership.
Currently, Concord's eHealth Suite is used by approximately 3,000 organizations
worldwide to optimize application performance and availability across networks
and systems. These new technologies will build upon the eHealth Suite's ability
to deliver an average ROI of 251 percent within the first year as proven through
research conducted by IDC.
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"Today's acquisition news signifies another milestone in Concord's prosperous
history. It is clear that Concord's future success will be the result of our
continued commitment to delivering quality products and services that are in
high demand by leading organizations worldwide," said Jack Blaeser, CEO and
president, Concord. "Concord's enhancements to the eHealth Suite through netViz
and Tavve technology is a direct response to customer requirements for managing
application service delivery from a business perspective."
netViz, based in Gaithersburg, Maryland, develops software to visualize the
relationship between business processes and technology infrastructures. netViz
is widely used at more than 3,800 leading organizations including Federal
Express, Pfizer Pharmaceuticals, and the United States Marine Corps. Upon
completion of the acquisition, expected to close in the third quarter, netViz
will operate as a Concord subsidiary. The company will continue to develop,
enhance and market its core product offerings in addition to being integrated
into the eHealth Suite over time.
Concord's license of Tavve technology will further increase the value of the
eHealth Suite through the future integration of network topology discovery and
root cause analysis. This will allow customers to uncover the connections
between layer 2 and 3 network devices, more easily identify the cause of an
outage by suppressing downstream alarms, and automatically populate new
visualizations with network dependencies. Tavve is a provider of network
management software tools.
"netViz's core strength and unique value proposition is the ability to allow the
end user to visually display the entire IT infrastructure and glean critical
information about its performance for improved business efficiencies," said Vo
Tran, CEO, netViz. "Backed by the strength of Concord to grow our existing
business and inspired by the roadmap of the eHealth Suite, netViz is in an
enviable position as the IT management landscape rapidly shifts and Concord's
strategy sets the industry agenda." At consummation of the netViz acquisition,
Tran will be appointed vice president of netViz product management, reporting
directly to Concord CTO and Executive Vice President Fred Engel.
CONFERENCE CALL
Concord will hold a conference call on July 15, 2003 to discuss Q2 earnings,
product direction and future expectations at 8:30 a.m. ET. The phone number for
the call is 800-473-6123 (domestic) and 973-582-2710 (international). The call
will be available for approximately two weeks. The number for the replay is
877-519-4471 for U.S./Canada and 973-341-3080 for
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international callers. The access code is 4035473. The information in this press
release and call replay is posted at www.concord.com
ABOUT NETVIZ CORPORATION
netViz Corporation is a private company based in Gaithersburg, Maryland. Version
1.0 of its flagship product, netViz, shipped in 1993. netViz 6.0 began shipping
in March 2002. netViz software is used by more than 3,800 public and private
organizations around the globe for WAN and LAN mapping, workflow documentation,
database visualization and conceptual design modeling. netViz licensees include
Accenture, AT&T, Bell South, British Telecom, Canon, Cisco Systems, Comdisco,
ConAgra, Federal Express, First Data Corporation, General Electric,
Hewlett-Packard, IBM, Intel, Motorola, NASA, Perot Systems, Siemens, Sprint,
Verizon and Zenith Electronics, as well as numerous domestic and international
government agencies.
ABOUT TAVVE SOFTWARE COMPANY
Tavve Software Company is headquartered in Research Triangle Park, NC, with
customers worldwide. Tavve Software develops and markets unique network
management software tools focused on fault management, root cause analysis,
performance reporting, automated network mapping, and remote network management.
Tavve's mission is to provide real-time, scalable, distributed network
management tools to assist and support NOC managers. For more information on
Tavve, visit www.tavve.com.
ABOUT CONCORD COMMUNICATIONS
Concord Communications, Inc. (Nasdaq: CCRD) is an industry leader in optimizing
application performance and availability across networks and systems. Concord's
approximately 3000 customers worldwide use the eHealth(R) Suite as the software
solution to manage their IT infrastructure to drive profitable business
operations, reduce costs, and increase competitive positioning.
Concord is headquartered in Marlboro, Mass. For more information on Concord,
call 1-800-851-8725 or visit Concord on the Web at www.concord.com. Concord
Communications, Inc., the Concord logo and eHealth are trademarks of Concord
Communications, Inc. All other trademarks are the property of their respective
owners.
SAFE HARBOR
Forward-looking statements made in this press release, including forward-looking
statements regarding the acquisitions, the benefits of the technologies acquired
and to be acquired, Concord's market position, and Concord's views as to market
acceptance, are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Readers are
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cautioned that all forward-looking statements involve risks and uncertainties,
and actual results could differ materially from the forward-looking statements
contained herein. Risks and uncertainties include, without limitation, Concord's
inability to consummate the netViz acquisition; Concord's inability to
successfully integrate the acquired technologies; the magnitude and duration of
the current domestic financial crisis and economic slowdown and specifically
their impact on the software, networking and telecommunications industries;
Concord's customers' ability to obtain funding, specifically in light of the
aforementioned financial and economic climate, and the resulting potential delay
of customer purchasing decisions; risks of continued operating losses; the
ability to attract and retain quality professional employees; uncertainties
involving intellectual property rights and litigation; litigation in general;
risks in technology development and commercialization; risks in product
development and market acceptance of and demand for the Company's products;
risks associated with competition and competitive pricing pressures; risks
associated with international sales, including foreign currency risks; and other
risks detailed in the Company's filings with the Securities and Exchange
commission, including but not limited to, the Company's annual report on Form
10-K and quarterly reports on Form 10-Q. Any forward-looking statements should
be considered in light of all these factors. The information contained in this
press release is applicable only today and should thereafter be considered
historical and will no longer constitute the Company's current expectations.
There can be no assurance that the contemplated advantage of the acquisitions
will be achieved. The Company undertakes no obligation to update information
contained in this press release.
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