Moving to create substantially the world’s largest software company, Uccel Corp, Dallas, Texas, yesterday agreed to be acquired by Computer Associates International Inc, Garden City, New York for about $800m in shares. Terms of the agreement are 1.69m Computer Associates shares for each of the 17m Uccel shares outstanding. The companies expect to complete their merger in August; the combined company will retain the Computer Associates name under its chairman and chief executive Charles Wang. The agreement, which is subject to shareholder and regulatory approvals, calls for the companies to merge on a pooling of interests basis. Both companies have grown big by acquisition of smaller companies; Uccel in addition has just completed a major restructuring that saw it divest a large number of applications and bureau businesses. For their most recent fiscal years, Computer Associates and Uccel respectively reported revenue of $309.3m and $141.6m, so the combined company will have annual sales approaching $500m. Uccel Corp shares opened $10 up at $42 on the news; Computer Associates opened $1.50 up at $26.50.
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