On April 27, 2006, Avocent announced an agreed acquisition of LANDesk Group for $416 million in base consideration. The deal combined Avocent’s infrastructure-access and management products with LANDesk’s desktop, endpoint, and security-management software. A further $60 million was contingent on performance, so $476 million was the potential maximum—not a guaranteed purchase price. Avocent completed the acquisition in 2006; Emerson later sold LANDesk to Thoma Bravo in 2010.
What Avocent agreed to pay
The announced transaction valued LANDesk at $416 million before contingent consideration. The announced mix included cash, Avocent stock, and assumed LANDesk options. LANDesk could also receive up to $60 million tied to financial performance through the end of 2006, bringing the possible maximum to $476 million. Contemporary coverage described the deal as subject to completion conditions and said Avocent expected to close in roughly two months to 75 days.
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| Deal component | Amount | What it meant |
|---|---|---|
| Cash | Approximately $200 million | Part of the base consideration |
| Avocent stock | Approximately $200 million | Part of the base consideration |
| Assumed LANDesk options | Approximately $16 million | Included in the reported $416 million base value |
| Performance-based payment | Up to $60 million | Contingent on LANDesk meeting specified financial targets through the end of 2006 |
| Potential maximum | Up to $476 million | Base value plus the maximum contingent payment; not guaranteed |
EDN’s April 27, 2006 report detailed the consideration. The headline’s $416 million figure refers to the base transaction value, not an outright $476 million payment.
Why Avocent wanted LANDesk
Avocent was best known for KVM switches and secure, out-of-band access to servers and network equipment. The company wanted to broaden that hardware-centered reputation into a wider infrastructure-management portfolio. Earlier in 2006, it had acquired Cyclades for about $90 million, adding Linux-oriented serial, console, and power-management capabilities. LANDesk offered a software layer for managing desktops, endpoints, and security.
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Avocent’s stated strategy was to cover more of the enterprise environment—from servers and network equipment to desktop and client systems, security, handheld devices, and displays. Executives framed the purchase as a move beyond “emergency access” toward end-to-end infrastructure management. That was the intended strategic direction; the announcement itself did not establish that a fully integrated platform had already been delivered. EDN’s contemporary coverage described Avocent’s rationale and the Cyclades acquisition.
What LANDesk brought to the deal
LANDesk sold software for managing distributed IT environments, rather than primarily hardware. Its products addressed desktop and endpoint management, systems management, network and security management, and process automation. The software helped organizations monitor, manage, secure, and automate PCs and other connected devices. Contemporary reporting put the company at about 500 employees at the time of the announcement.
LANDesk also brought an established business: it had enterprise customers and relationships with large PC manufacturers, including Lenovo and Intel. Its roots went back to a software business associated with LAN Systems. Intel acquired its software assets in 1991, and the business operated within Intel until it was spun out as an independent company in 2002. It was therefore independent—not an Intel subsidiary—when Avocent announced the acquisition. CIO’s April 27, 2006 report covered LANDesk’s products and background; EDN covered its history and industry relationships.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What customers and employees were told about the transition
The reported plan was for LANDesk to remain in the Salt Lake City area and operate with substantial autonomy as an Avocent business unit. Avocent said it would continue supporting LANDesk’s existing customers. The companies anticipated combined offerings over time, but detailed product plans had not been finalized when the deal was announced. Those statements described the plan at announcement, not proof of how every product or customer relationship was ultimately handled. CRN’s May 1, 2006 report covered the expected operating arrangement and product-planning status.
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What happened after the announcement
- On April 27, 2006, Avocent announced the agreed acquisition, with an expected closing period of roughly two months to 75 days.
- Later reporting confirms Avocent acquired LANDesk in 2006. The available retrospective evidence establishes the year, not a precise closing date. The Salt Lake Tribune’s 2010 retrospective recounts the acquisition.
- Emerson Electric agreed to acquire Avocent in October 2009. SEC filings identify LANDesk among Avocent’s businesses and subsidiaries. The 2009 filing documents the Avocent transaction; an Avocent subsidiary filing lists LANDesk in its corporate structure.
- In 2010, Emerson sold the LANDesk business to Thoma Bravo. Emerson reported proceeds of approximately $230 million and said LANDesk was not a strategic fit. The sale price was for this later divestiture, not the 2006 acquisition. Emerson’s 2010 filing reports the sale; the Salt Lake Tribune also covered the ownership change.
How to read the deal in retrospect
The transaction was a clear portfolio-expansion move: Avocent sought to pair access to infrastructure with software for managing endpoints and security. That strategic logic explains the announced combination, but it does not by itself show how successfully products, customers, or channels were integrated. Emerson’s later decision to sell LANDesk establishes that the business did not remain in its portfolio; it does not, on its own, prove that Avocent’s 2006 acquisition failed on its original terms.
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