Computer Associates alters takeover of Legent in response to U.S. concerns

Article Abstract:

Computer Associates International Inc announced an agreement with the US Justice Department's Antitrust Div that will allow the company to proceed with its acquisition of rival Legent Corp. Computer Associates has been trying to acquire Legent for months, but the Justice Department's investigation has forced the company to extend its deadlines six times. Computer Associates will purchase Legent for $1.74 billion, representing the 2nd largest acquisition in the software industry's history. Under the agreement, Computer Associates will license five of Legent's mainframe-based software applications to other software developers. The Justice Department was concerned that Computer Associates would monopolise the market represented by Legent's five applications. Observers note that the agreement represents the mildest form of action that the Justice Department could have taken. Computer Associates, which is on a 16-year acquisition spree, is the 2nd largest software developer.

Author: Ziegler, Bart
Computer Software, Software Publishers, Software, Political activity, Antitrust law, United States. Department of Justice. Antitrust Division, Industry legal issue, Antitrust Issue, Legent Corp., Lawsuit Litigation, LGNT

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Pansophic Systems is latest Computer Associates' deal

Article Abstract:

Computer Associates International Inc, Garden City, NY, agrees to acquire Pansophic Systems Inc, Lisle, IL, in a deal valued at $290 million, or $16.50 a share. The Pansophic acquisition comes two weeks after Computer Associates acquired On-Line Software International Inc for $120 million. Computer Associates had experienced problems with a 1989 acquisition of Cullinet Software Inc and had stopped acquiring companies. Now, Computer Associates is buying again. When the acquisition was announced, Pansophic's stock rose $3.75, to $15.25 late in the day on Tuesday, Sep 3, 1991. Computer Associates' stock was unchanged.

Author: Fuchsberg, Gilbert
Computer related services, not elsewhere classified, Computer Software Industry, Stock, Acquisition, On-Line Software International Inc., OSI, Pansophic Systems Inc., PNS

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Subjects list: Computer software industry, Software industry, Mergers, acquisitions and divestments, CA Inc., CA
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