IT management software maker Nimsoft has acquired Indicative Software, whose product lets companies track end-user response time, the companies announced Tuesday.

Terms of the cash and stock deal were not disclosed.

While the Big Four, Hewlett-Packard, CA, IBM and BMC, compete for top-tier corporate clients in information-technology management, Nimsoft operates primarily in the middle market. Gary Read, Nimsoft's chief executive, said the acquisition was prompted by customers' requests for the ability to clock response time and see where bottlenecks are developing on hosted and Web-based applications.

Indicative, which licenses technology developed at HP, took in $19 million in two venture rounds, a spokeswoman said. Sequel Venture Partners and Sutter Hill Ventures, two of Indicative's backers, continue as investors in the combined company though the venture capitalists will give up their seats on the board of directors.

Ron Bernal, general partner at Sequel, based in Boulder, Colorado, said that Nimsoft's direct sales force will combine with Indicative's indirect channel partners to reach more customers. Nimsoft's stress on the middle market also will smooth out the sales of Indicative, which focused on large enterprise clients, Mr. Bernal added.

Mr. Read, who will continue as chief executive of the combined company, founded Converse Software in 2002. Two years later, Converse merged with Norway's Nimbus Software, creating Nimbus, based in Redwood City, California.

Though closely held Nimsoft focuses on mid-sized companies, its clients include corporate giants like Wells Fargo & Co., KPMG and Baxter Health. In January 2007, a year in which Nimsoft's bookings reached $29.4 million, the company took its first venture capital—a $10.3 million round led by JMI Equity and Northzone Ventures.

In March, Mr. Read hinted at the merger on his blog, saying, "We have some huge news cooking." Nimsoft's competitors in the mid-tier market for IT management and automation software include Attachmate's NetIQ and EMC's Smarts.

The deal is expected to close this week and be accretive this year, Mr. Read said. The founder and chief executive of Indicative, John Smith, will be joining Nimsoft as vice president of strategy.

After absorbing 20 Indicative employees, Nimsoft's headcount will reach 161. Nimsoft will retain Indicative's Fort Collins, Colorado, offices where it plans to open a research and development center, Mr. Read said.