When I saw LANDESK and HEAT were “joining forces” I frankly assumed it was some kind of partnership or possibly an acquisition of HEAT by LANDESK. I was surprised to see it was really the other way around.
LANDESK had been making acquisitions of its own recently, pulling in AppSense and Xtraction. They have also been working to better establish themselves down-market, working to win smaller mid-sized customers (<5000) that typically require easier to use features and functions as compared to their traditional enterprise customers.
HEAT is already a bit of a complicated story of mergers and acquisitions. Lumension and FrontRange merged to form HEAT Software just a couple of year ago, and shortly after acquired the Absolute Manage product from Absolute Software (who now focus exclusively on security).
It isn’t really HEAT that is acquiring LANDESK, but the investement company that has HEAT in it’s portfolio. Clearlake Capital is acquiring LANDESK from Thoma Bravo for an undisclosed amount. The HEAT website already features a growing list of management product acquisitions that often overlap in functionality. For example, HEAT DSM and HEAT LANrev have a lot of overlap but are still marketed side by side. Both of which were acquisitions themselves: HEAT DSM was once Enteo (or NetInstall) and NEAT LANrev was Absolute Manage (funny, it was actually originally called LANrev prior to its earlier acquisition by Absolute). Other overlap exists in their portfolio as well, and now they are adding LANDESK to the mix. It is an impressive list, and I’d say that combing the best of each into a single, killer management offering is a likely goal. There must be a belief they can pull it off or I don’t think we’d see this move.
I was already impressed with LANDESK’s acquisitions and I’ve always thought that if HEAT could do a good job combining it’s DSM and LANrev offerings it would be a significant contender in the mid-market. If LANDESK has about 900 employees and is nearly doubling now to 1,600 employees it may be that the right resources can come to bear to make this work. It’s a bigger problem, but with more resources, and a huge potential for doing something significant.
PS: As part of this we’ll see yet a new company name (and likely product names). All the name changes and acquisitions really make my new Product Graveyard reference a more and more necessary reference.
Note: It’s a small world; Francico Partners was an investment group that actually had FrontRange in it’s portfolio where became HEAT Software. You might recognize Francisco Partners as a name associated with the recent acquisition of Dell Software (which included KACE in it’s portfolio).