Q: Why did LANDESK buy Shavlik?

We believe that this is a good fit for LANDESK.  Shavlik represents an opportunity to get segment leading, agentless patch and virtualization management capabilities and a world class team behind those offerings.  We also gain technologies to address SCCM add-ons.  Overall, Shavlik presented a situation which we believe is beneficial to employees, shareholders, customers and partners.

Q: What happens to Shavlik’s product lines and brands?

LANDESK is committed to maintain the current products and to provide meaningful enhancements in the coming years.  We believe the Shavlik brand continues to carry a strong awareness in the segment and we will bring that brand back.  Most importantly, Shavlik has a team of dedicated and capable people that we are uniting to help us make this happen.

Q: Will the Shavlik team be joining LANDESK?

Yes, we are very excited to welcome Shavlik to the LANDESK family. The Shavlik employees are an extremely talented group of people and possess the same core values essential to the culture at LANDESK. This team will continue to reside in Minneapolis, MN, while some operations will be moved to LANDESK’s corporate offices in Salt Lake City, Utah.

Q: What is Shavlik going to bring to LANDESK's overall product and service portfolio?

As a leader in systems and security management, LANDESK continues to strengthen our portfolio with technologies that complement our strategy of expanding into new market segments and develop and acquire products that help our customers build their businesses more effectively. Shavlik offers great technology and an excellent channel to deliver on that strategy.

Q: How will Shavlik be incorporated in the LANDESK infrastructure?

The plan is to build a separate category of technologies around the Shavlik products and brand that will be used to expand into new market segments. In addition, we will analyze areas of synergy where Shavlik technologies can be leveraged to complement both LANDESK and Wavelink products for both new and existing markets.

Q: Will Shavlik change its name to LANDESK?

Shavlik's products and services will continue to be branded as Shavlik.  In order to support the momentum that Shavlik has created in the market, the Shavlik brand will continue to be used. Shavlik has also had tremendous success as an add-on to Microsoft System Center Configuration Manager, and we will continue to look for areas within SCCM where we can add value and solve specific market problems.

Q: What is the value of the deal? How does this compare to what VMware paid for Shavlik less than two years ago?

While LANDESK is not commenting on the price of the deal, management is confident that this deal is valued in such a way to be accretive and to add value to LANDESK shareholders and to provide further fuel for additional acquisitions.

Q: Why is VMware selling Shavlik so soon after it acquired Shavlik?

In the January earnings call, VMware announced a strategic re-focusing around the software-defined data center.  This change drove a refocusing of VMware around networking, storage and virtualization, as well as a portfolio rationalization.  Though Shavlik continues to be a great business, Shavlik is no longer aligned with the larger VMware strategy and VMware chose to divest and send the business to a more aligned home.

Q: How are LANDESK and Shavlik products complementary? Is there any overlap?

Shavlik Protect is an agentless patch management product which is well suited for sale through a partner channel.  While inside of VMware, Shavlik Protect has created a powerful virtual machine patching capability which leads the industry.  Shavlik also has an add-on offering to Microsoft System Center which further expands on capabilities which can be sold to that install base.  While LANDESK also has patch capabilities, we believe the unique product factoring make them relevant to different size customer deployments.

Q: How does this acquisition strengthen LANDESK’s competitive position in the market? Does it make you a more attractive competitor vis-à-vis Microsoft and IBM?

We believe that the Shavlik product and people significantly bolster LANDESK’s position in the market.  It broadens the offering we can provide for Microsoft SCCM customers and it also gives more reasons for prospects to choose LANDESK as they look to meet their User Management needs in the future.

Q: LANDESK is clearly acquiring new technology. In what other areas will we see LANDESK acquisitions?

LANDESK’s strategy involves consolidating the segment through acquisitions. Shavlik represents the type of team, technology and segment position which we seek to acquire. LANDESK is actively looking for more deals and our strong profitability fuels the ability to continue to layer in more assets which add value for our customers and partners worldwide.

Q: Is LANDESK planning to maintain and invest into Shavlik products?

The Shavlik products allow LANDESK to accelerate in several different strategic areas and plans to maintain the current roadmap. We plan to invest into the Shavlik brand, product, engineering, channel and sales organizations.

Q: Will the product lines be integrated? If so, how will you integrate the products?

LANDESK will continue to support and advance all of the currently shipping Shavlik products.  We believe there are some technologies which can be shared between LANDESK and Shavlik over-time to enhance the value of the respective products.

Q: Will Shavlik's customer base be affected?

Shavlik's current customer base will benefit from the continued development of Shavlik’s products and services backed by LANDESK. LANDESK believes the future is very bright with the Shavlik product line and current customers will benefit from Shavlik being part of the LANDESK family. Both Shavlik and LANDESK customers have reported very high levels of customer satisfaction and it is our goal to ensure that both sets of customers continue to receive the same level of support and quality products they have come to expect.

Shavlik customers will continue to receive support and services on all Shavlik-supported products. No changes are planned to end-of-life any of the Shavlik products.

Q: With two patch management solutions, what is the plan for integration or consolidation?

The strategy is to maintain the Shavlik brand and products and they will be sold through the existing Shavlik channel partners. We will continue to evaluate the synergies between the products and look for ways to leverage both technologies into the different addressable markets.

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