CSC agrees to buy VC-backed ServiceMesh

CSC has agreed to acquire ServiceMesh. No financial terms were disclosed. RBC Capital Markets is serving as financial advisor to CSC in this transaction, which is expected to close in the third quarter of CSC’s fiscal year 2014. Based in Santa Monica, Calif., ServiceMesh, which is backed by Ignition Partners, is a provider of cloud management solutions.


CSC (NYSE: CSC) has signed a definitive agreement to acquire ServiceMesh, an enterprise cloud management company. This strategic acquisition enables CSC to continue its transformation into a next-generation IT company that helps its clients migrate their applications into cloud computing environments.
“The future of next-generation IT infrastructure will involve a set of multiple clouds utilized simultaneously by enterprises,” explained CSC President and Chief Executive Officer Mike Lawrie. “ServiceMesh allows us to catalogue enterprise applications and orchestrate those applications dynamically to run in different clouds based on the characteristics of the applications. From our unique position as an independent global technology company, we will integrate those workloads for our clients through our portfolio of services and technologies.”
Santa Monica, Calif.-based ServiceMesh provides ServiceMesh Agility Platform, an enterprise cloud management platform, to automate the deployment and management of enterprise applications and platforms across private, public and hybrid cloud environments. The ServiceMesh Agility Platform is a single, policy-driven, integrated control point for governance, compliance and security across cloud applications and environments, empowering employees with fully governed, self-service access to applications, platforms and services. ServiceMesh counts among its customers some of the world’s largest enterprises in financial services, healthcare and other highly regulated industries.
“As an agent for cloud management, ServiceMesh is right at the point of consumerization for next-generation enterprise applications,” noted CSC Chief Technology Officer Dan Hushon. “With ServiceMesh, we will empower an ecosystem of enterprise software providers by lowering the friction for companies to execute a multi-vendor hybrid cloud strategy while maintaining central governance, policy and administration.”
In the past 20 months under new leadership, CSC has undertaken a significant strategic transformation to position itself for the high-growth segments of the technology solutions and services marketplace, including cloud computing, big data, cybersecurity and next-generation applications. This transformation has been enabled by several acquisitions of next-generation technology, including big data firms Infochimps and 42Six Solutions, and partnerships with industry leaders that can deliver scalability to CSC’s clients, including an alliance agreement signed in August with AT&T.
The security requirements of individual workloads and applications will factor into enterprises’ cloud selection decisions. While applications requiring less security may be earmarked for low-cost public clouds, other applications will require more secure clouds, such as CSC’s CloudCompute, CSC BizCloud and CSC BizCloud VPE. CSC is one of only two leaders in Gartner’s 2013 Infrastructure as a Service Magic Quadrant.
“Enterprise consumption habits have changed, as customers today want to move to a new IT model in which they can operate at a lower cost structure and get to market more quickly with their products and services,” said ServiceMesh Chief Executive Officer Eric Pulier. “Bringing ServiceMesh and CSC together creates a true leadership position in IT transformation.”
Existing customers of ServiceMesh will be able to leverage CSC’s global network of industry consultants, application developers, software engineers, cybersecurity experts and infrastructure professionals. ServiceMesh will have access to CSC’s global sales, marketing, delivery and solution development teams.
“We are pleased to see ServiceMesh and CSC come together,” said Swisscom IT Services’ Chief Executive Officer Andreas Koenig. “Swisscom is building its next-generation cloud offerings with the ServiceMesh Agility Platform, and now together with CSC, we are enthusiastic about the prospect of accelerating our partnership on a global basis.”
“The ServiceMesh Agility Platform is a foundational element of our cloud operating model,” said Commonwealth Bank of Australia’s Chief Information Officer Michael Harte. “Now the combination of ServiceMesh and CSC will further strengthen and accelerate enterprise IT transformations and drive significant value, not just from productivity gains and cost savings but, moreover, by providing an ecosystem for innovation across enterprises.”
The companies expect to close the transaction in the third quarter of CSC’s fiscal year 2014. RBC Capital Markets is CSC’s financial advisor for this transaction.
About CSC
CSC is a global leader of next-generation information technology (IT) services and solutions. The company’s mission is to enable superior returns on clients’ technology investments through best-in-class industry solutions, domain expertise and global scale. CSC has approximately 81,000 employees and reported revenue of $13.5 billion for the 12 months ended September 27, 2013.