UPDATE 1-CA, HCL Tech in deal on threat business

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BOSTON, Nov 13 (Reuters) - U.S. business software maker CA Inc. CA.N said on Tuesday it reached a deal for Indian technology services company HCL Technologies (HCLT.BO: Quote, Profile, Research, Stock Buzz) to take over research and product development for its business selling products to fight malicious software and other computer threats.

HCL will hire 375 employees of CA's Threat Business Organization, most of whom are in the United States, Australia and Israel, the companies said in a joint statement. CA will retain sales and marketing functions.

They expect to start the new arrangement by the end of the year, once they agree on final terms.

HCL will handle research, engineering, technical support, technical writing and quality assurance for CA's computer security products for consumers, small business and corporations.

The Indian company will earn a portion of the revenue that CA gets from those products.

CA, with $3.9 billion in annual revenues, said the business generates annual revenue in excess of $100 million, though it has lost market share to rivals in the business market over the last 18 months.

The business software maker will book all of the revenue from sales of those products, then treat its payments to HCL as expenses, CA said. (Reporting by Jim Finkle; Editing by Tim Dobbyn, Gary Hill)