UPDATE 1-CA to buy NetQoS as it expands software line

Mon Sep 14, 2009 5:55pm EDT

* CA to pay $200 mln in cash for privately held NetQoS

* Deal boosts line of software to manage computer networks

BOSTON, Sept 14 (Reuters) - CA Inc (CA.O), a maker of programs for managing corporate computer systems, said on Monday it will buy privately held software maker NetQoS for $200 million in cash as it looks to expand its product portfolio.

The move will add programs that companies can use to identify and repair problems in their computer networks as well as software applications deployed across their data systems. CA already sells a large line of software that companies use to manage large computer networks -- from mainframe computers and PCs to smartphones.

The all-cash transaction is expected to slightly reduce CA's earnings per share in its fiscal year that ends in March 2010.

CA said it expects the deal to close before the end of December. Shares in the Islandia, New York, company rose 9 cents to $22.68 on Nasdaq shortly before the close.

(Reporting by Jim Finkle; Editing by Richard Chang)

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