EMC buying Springs software company

Computer storage giant EMC agreed Wednesday to buy Colorado Springs-based software company Configuresoft in a deal that began last fall with a marketing agreement.

Terms of the transaction, scheduled to be completed early next month, were not disclosed. Officials from both companies said Configuresoft would operate as part of EMC's Resource Management Software Group in Colorado Springs and keep most of its 150-person work force. Officials from both companies said the acquisition grew out of an agreement Boston-based EMC had signed in November to resell Configuresoft's server and data center automation software under its own name.

"With Configuresoft, we're gaining market-leading server configuration management solutions," said Chris Gahagan, senior vice president of EMC's Resource Management Software Group.

Configuresoft said it generated record revenue in 2008, although the company declined to disclose its financial results for last year. It reported about $30 million in sales for 2007.

Configuresoft's software - which helps large corporations, colleges and other organizations manage computer servers - is used by about 400 customers worldwide, including 13 of the world's 25 largest companies, mostly in financial services and energy.

"Becoming part of EMC is the right move at the right time - giving us the financial and technology resources of a proven leader in information to take our market leading solutions to the next level," said Alex Goldstein, co-founder of Configuresoft who returned as chief executive in February to replace Mark Ruport. Goldstein had been CEO of the company from its founding in 1999 until Ruport took over the post in 2006 to help grow the firm.

Configuresoft had grown to about 180 employees by early 2008, but started trimming its work force later in the year as the U.S. economy slowed and the company shifted some of its software development to Infogain Corp. in Bolivia and India, said Chris Farrow, Configuresoft's vice president of marketing. The company was started in Woodland Park with a $4.5 million investment from Houston-based JMI Equity Inc. and moved to Colorado Springs in 2004.

"We didn't set out (with EMC) to be acquired, but we are happy with the acquisition," said George Gerchow, Configuresoft's director of business development and corporate strategy. "Our strength and the success of our product made them want to move from an (original equipment manufacturer) agreement to an acquisition. The agreement generated tremendous activity and sales for them and filled a hole in their product line."

EMC has acquired nearly a dozen companies in the past three years, including its $213 million purchase last year of Zip drive maker Iomega Corp. The company employs more than 40,000 worldwide and earned $1.35 billion on $14.9 billion in revenue last year with growth averaging nearly 19 percent during the past five years. EMC's shares rose 6 cents to $12.08 in trading Wednesday on the New York Stock Exchange.

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