“Software applications are changing the world, disrupting established business models and bringing in completely new experiences in areas from travel to banking. In order to compete, businesses need to develop high quality software quickly and reliably,” said Mike Gregoire, Chief Executive Officer, CA Technologies. “Rally is a leading provider of Agile development software and services, with offerings that complement and expand CA’s strengths in the areas of DevOps and Management Cloud. Every developer dreams of creating truly transformative software that responds to a business challenge extremely quickly. Joining forces with Rally makes this dream a possibility for millions of developers worldwide, and in turn opens up the possibility of a whole new range of experiences driven by software. At the end of the day, this deal is about enabling speed and flexibility, about how we can make the most demanding enterprises truly agile.”
With users in more than 135 countries and nearly every industry, Rally works with some of the world’s largest and most respected brands, including over 35 of the Fortune 100. These customers depend on Rally’s award-winning, cloud-based Agile development platform and the industry’s most experienced transformation consultants and Agile coaches.
The acquisition of Rally is a significant milestone in CA’s strategy to help customers thrive in the application economy, in which software applications are ubiquitous - driving every facet of business in every part of the world.
Tim Miller, Rally’s Chairman and Chief Executive Officer added, “In a world driven by software, the powerful combination of Rally and CA will help our combined customers to better navigate changing markets, improve performance and deliver value faster - while accelerating the pace of disruption and developing a competitive advantage through technology. CA and Rally have more than four years of history working together, and we are thrilled to be taking this next step in our relationship to deliver unique value to both CA and Rally customers.”
Leading industry analysts like Forrester and IDC say that the Agile methodology is a powerful framework for developing software.
According to Forrester, sixty-nine percent of respondents out of 560 surveyed decision-makers of the annual Forrester Forrsights Software Survey1 have interest, plan to implement, or have already implemented Agile for their custom development. Sixty-three percent of respondents of the same survey answered similarly for packaged software development and maintenance.
Market intelligence firm IDC expects strong growth for Agile ALM software. In an analysis2 of the Agile application life-cycle management market, it reports that worldwide Agile application life-cycle management software revenue in 2012 reached $211.9 million, and, with a forecasted compound annual growth rate of 39%, will reach $1.1 billion by 2017.
1 Forrester Research, Inc., 2014 Market Overview: Agile Development Service Providers, December 2014.
2 IDC’s Worldwide Agile Application Life-Cycle Management Software 2014–2017 Forecast and 2012 Vendor Shares: Quick Access Drives Adoption and Business
Agility, May 2014.
Additional prepared remarks on the acquisition can be found at ca.com/invest.
Qatalyst Partners acted as financial advisor to CA Technologies and Wilson Sonsini Goodrich & Rosati acted as legal counsel. Deutsche Bank Securities served as financial advisor to Rally Software Development Corp. and Cooley LLP served as legal counsel.
About Rally Software Development Corp.
Rally Software Development Corp. (NYSE: RALY) is a leading global provider of enterprise-class software and services solutions that drive agility. Companies use Rally's solutions to accelerate the pace of innovation, improve performance, and respond effectively to evolving competitive markets and customer needs. Rally SaaS platform transforms the way organizations manage the software development lifecycle by aligning software development and strategic business objectives, facilitating collaboration, and increasing transparency. Rally consulting and training services apply Agile and Lean approaches to help organizations innovate, lead, adapt, and deliver. Learn more at www.rallydev.com.