Micromuse goes up the river

Micromuse, the Network management software company, has bought its UK archrival RiverSoft in a US$64.4 million takeover.

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By  Neil Denslow Published  June 20, 2002

Micromuse, the Network management software company, has bought its UK archrival RiverSoft in a US$64.4 million takeover.

RiverSoft was set up by ex-Micromuse CTO, Phil Tee after he fell out with Micromuse’s founder Chris Dawes in 1997. It soon became a 90’s .com darling, but it has recently struggled.

Micromuse CEO Greg Brown told silicon.com that the takeover will add a huge amount to the company.

“This is not a case of buying a competitor here [in Britain]. RiverSoft has a stack of complementary technology and a big European presence. Conversely we can give RiverSoft the kind of marketing and sales organisations and global presence it lacks,” he said.

In a statement to the London Stock Exchange, RiverSoft’s directors also highlighted the advantages the company would gain from Micromuse’s global reach.

“In view of the weakness in the markets in which RiverSoft operates and the increasing need for critical mass and depth of resources in marketing channels in order to sell effectively to major corporate customers, the interests of RiverSoft shareholders would be better served by RiverSoft becoming part of a larger group,” they said.

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