Computer Associates to buy Sterling

NEW YORK, FEBRUARY 14: Business software provider Computer Associates International Inc on Monday said it agreed to acquire Sterling Software Inc in a $4 billion stock transaction to create one of the largest suppliers of storage management software.

Under terms of the agreement, Computer Associates would exchange 0.5634 share for each outstanding Sterling share. The exchange ratio is subject to a collar, which wouldchange the ratio if Computer Associates’ average trading price during a designated period rose above $77.12 or below $63.10 per share. The transaction was approved by the directors of both companies and would be accounted for as a purchase.