CA gobbles up Sterling Software

Computer Associates International Inc. announced Monday that it would acquire Sterling Software International Inc. for $4 billion in order to expand its federal and electronic business capabilities.

Computer Associates, which recently received a $7.5 million Army contract, specializes in enterprise computer software, including data storage and antivirus products, according to Diana Bolkas, spokeswoman for Computer Associates. Through its acquisition of Sterling, Computer Associates hopes to increase its storage management technology. It also hopes to gain a stronger presence in the network security industry, according to Sanjay Kumar, president of Computer Associates.

"We are both in the data storage and security business, but we do not have technology which overlaps," Kumar said in an interview Monday. "This will allow us to be more effective, lower our costs and build better technology."

Computer Associates, which is listed on the General Services Administration Schedule, has provided 3-D simulation technology to the armed forces, as well as 3-D module technology to a variety of agencies for mapping purposes. Sterling has service contracts for weather communication projects, air traffic control programs and a variety of classified intelligence projects.

By combining Sterling's OS/390-based software with Computer Associates' Windows NT programs, the companies will be able to serve a larger market, especially in the federal services division.

"Sterling has a backlog of more than 250 million services," Kumar said. "We believe that through the combination of our technology we can become the lead provider of network and Internet security."

More information on the acquisition is available at www.cai.com.

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