CA to buy Sterling

By Zachary Shess

Computer Associates (CA) last month announced its intention to acquire Sterling Software in a stock swap valued at approximately $4 billion. Even though CA will acquire Sterling's full line of network management tools and inherit some 20,000 customers, CA officials are enthusiastic about obtaining Sterling's storage management software suites.

According to Sanjay Kumar, president and COO of CA, the acquisition converges complementary product lines, enables "end-to-end storage management," and provides an entry into new S/390 and Windows NT markets. In particular, Kumar says the purchase will facilitate multi-platform hierarchical storage management (HSM), storage resource management (SRM), and backup capabilities with minimum overlap between the two companies' product lines.

"It's still not end-to-end storage management," contends Carolyn DiCenzo, a chief analyst with Dataquest, a market research firm in San Jose, "but it fills some of the holes CA had in the storage space."

The biggest gap is filled by Sterling's SAMS:Vantage SRM suite, according to DiCenzo. "It's the crown jewel of the acquisition because it runs on both mainframes and distributed systems."

The deal has been approved by each company's board of directors. Pending Federal approval, CA hopes to finalize the merger early next month in time for its CA World user conference, April 9-14, in New Orleans.

This article was originally published on March 01, 2000