DOW JONES NEWSWIRES CA Technologies (CA) agreed to pay $330 million in cash to acquire privately-held Interactive TKO Inc., saying the software provider's technology will add a new dimension to the company's information technology management offerings. CA, which makes software for mainframe and other corporate computers, reported relatively stable operating profit for the last few years, while it made significant cost cuts before and during the recession. The company on Wednesday said demand for rapid time-to-market and lower operational costs is driving IT organizations to adopt new approaches, such as cloud services. The company said the ITKO deal will help customers overcome current organization limitations. CA said the combination of ITKO with the company's other services will help it create services that can be built, tested and delivered at an increasingly faster pace. The acquisition of ITKO, which should close within three months, is expected to lower earnings in fiscal 2012 but add to the bottom line the following year. ITKO reported revenue of about $39 million for the trailing 12-month period ended March 31, more than double the prior period. ITKO President and Chief Executive Shridhar Mittal will join CA as a general manager of the unit, which will become a division of CA. CA expects the company's employees, which total about 120, will also join the parent. Shares of CA closed up 0.7% to $22.63 and were inactive after hours. -By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
