Peregrine Welcomes Loran to Its Nest In Network Management Matrimony

Event Summary

Peregrine Systems, Inc. agreed to acquire Loran Technologies in a stock swap valued at $94 million. Loran is a Canadian company that specializes in network management. Peregrine, a company with strengths in IT asset management (see Peregrine Swoops Down On Network Monitoring Company) and e-procurement (see First Look: Peregrine Offers Cradle to Grave Procurement) had previously made an equity investment in Loran.

Loran's flagship product Kinnectics was the base for Peregrine's InfraTools Network Discovery. This software can automatically discover all of the devices and connections of a network, creating a detailed physical map down to the port level. As a result of the integration work over the last year, this map can be downloaded to Peregrine's ServiceCenter and AssetCenter products, allowing for tracking of a company's network assets and the service incidents relating to them.

Market Impact

With this announcement Peregrine sends signals to its traditional customers that it is not forgetting its core strengths in IT management. Such a signal may be welcomed after many recent Peregrine forays into the e-commerce arena, including its recent $1.5 billion acquisition of Harbinger Corporation. In truth, though, Peregrine seems to have never wavered in its commitment to IT infrastructure management (see Peregrine Polishes the Old In-Out-and-In-between).

With increases in revenues and cash on hand, Peregrine is primed to further solidify itself as a premier provider of cradle-to-grave IT asset and infrastructure tools and systems.

User Recommendations

This announcement speaks to potential users most strongly of the long-term viability of Peregrine, since it has been integrating and selling Loran's product for some time. What it says is that any user evaluating a Peregrine product in a selection should feel confident about the company's vision and ability to execute. These are not inconsiderable, and in some product selections could outweigh any advantages that a smaller or less agile company's products may have in meeting specific functionality requirements.