CXOtoday Exclusive: LANDesk to be finally sold off this week
US-based LANDesk, a provider of enterprise IT management tools, is finally all set to walk down the aisle with a new partner. Industry sources close to CXOtoday.com have stated that Emerson (NYSE:EMR), who through it’s acquisition of Avocent Corporation, is the parent of LANDesk, has identified a potential suitor and will finalize the deal to sell it off this week. While the potential acquirer is yet to be announced, it is estimated that LANDesk could be sold in the range of $400 million to $500 million. This is occurring in less than a year of Emerson having acquired Avocent.
Emerson is a diversified global manufacturing and technology company with products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation. It has been in the public domain that Emerson did not see LANDesk as a strategic fit into its current line of business and was keen to sell it off.
Being acquired is nothing new for LANDesk as it has been bought and sold off quite a few times ever since its formation in 1985. Founded in 1985, LANDesk was first bought by chip maker Intel (NASDAQ:INTC) in 1991 as part of its effort at gaining a toehold in the fast emerging IT management space. Through this acquisition, Intel went toe-to-toe with players such as Microsoft (NASDAQ:MSFT), Hewlett Packard (NYSE:HPQ) and Computer Associates (NASDAQ:CA) in fighting it out for a share in the enterprise IT management application and process space. While it met with some success, it was never recognized as a leader.
In 2002, Intel spun off the LANDesk product line into an independent company which was then acquired by Avocent in 2006. Avocent in turn went on to be acquired in December 2009 by Emerson.
In India, LANDesk has been selling through a two-tier model and is sold through Allied Digital, Lenovo and Wipro. Locally the current team strength consists of 15 people and has clocked global revenues of US $150 million in 2009.
Community blogs are speculating that Dell (NASDAQ:DELL), VMware (NYSE:VMW) and Lenovo could be potential suitors of LANDesk. Since company officials could not be reached at the time of filing this story, it would be interesting to see where LANDesk will wind up this time.
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