CA buys Sterling for $4.2b.

Computer Associates said it has agreed to buy Sterling Software, a maker of computer-storage management products, for $4.2 billion in stock. The purchase will give Computer Associates a popular line of products that protect and deposit corporate information along with tools for creating Web programs. Computer Associates is betting that businesses want a full range of software to operate computers and databases. "Storage and networks are coming together,'' said Computer Associates President Sanjay Kumar. "You need broad offerings to survive.''

CA already ranks as the largest supplier in the $2.7 billion storage software market, where it enjoys a 33 percent share. Sterling Software is ranked fifth with 3.4 per cent of the market. Storage management software is fast becoming a key technology as companies need to compile information to keep their Internet sites running. Storage management software lets companies monitor where different information is located and how to retrieve it. Sterling Software has more than 20,000 customers using its programs to control, automate and manage corporate computer systems, as well as those tied to the Internet.