San Francisco, CA – In a shocking turn of events, Embarcadero Technologies Inc. and CA Inc. have been forced to abandon their proposed acquisition of CA Inc.’s ERwin Data Modeler product suite after the DOJ expressed concerns over the deal’s potential for anticompetitive effects.
According to sources close to the matter, the proposed acquisition would have given Embarcadero Technologies a stranglehold on the data modeling market, allowing the company to raise prices and stifle innovation. The DOJ claims that an increase in the price of data modeling products would have resulted in significant harm to users of these tools.
The ERwin Data Modeler is a powerful tool used to view and streamline enterprise data, centralize data management, and reduce data redundancies. An acquisition by Embarcadero Technologies would have eliminated a vigorous competitor that has competed to provide expanded functionality and more affordable pricing in recent years.
Embarcadero Technologies Inc., based in San Francisco, California, is owned by private equity group Thoma Cressey Bravo and provides software to build, test, optimize, and manage application infrastructure and databases for large corporations and government agencies.
CA Inc., based in Islandia, New York, provides software and other tools for managing networks, databases, applications, storage, security, and other systems.
The proposed acquisition was a major blow to the competitive landscape of the data modeling market, and the DOJ’s intervention has preserved the status quo. Embarcadero Technologies will continue to compete with CA Inc. in the data modeling market, and users of these tools can breathe a sigh of relief.
The deal was a closely watched transaction in the tech industry, and the DOJ’s decision to block it will have significant implications for the market. The proposed acquisition would have been a major coup for Embarcadero Technologies, but the company’s plans have been foiled by the DOJ’s antitrust concerns.
As the dust settles on this high-profile deal, one thing is clear: the DOJ will not hesitate to take action when it comes to protecting consumers and promoting competition.
Related Federal Cases
- Shams Gets 8-25 Years: $7M Medicaid Heist · New York
- Geneseo Students Triumph in FDIC’s Banking Challenge · North Carolina
- Google Cornered: AG James Nails Tech Giant in Ad Monopoly Case · New Hampshire
- Live Nation Faces Lone Fight: NY AG Rejects DOJ Deal · Washington
- Live Nation & Ticketmaster Face Antitrust Fight in NY · Washington
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
