Sterling Software to acquire Cayenne

By acquiring Cayenne Software, application development leader Sterling Software has added database modeling and design spice to its app development products, and is rescuing a struggling peer in the process.

Under terms of the deal, Cayenne will merge into Sterling's application development business. Cayenne stockholders will receive approximately $11.4 million, $8 million of which may be reduced contingent upon interim financing from Sterling. The transaction is expected to close in October; Sterling Software president and CEO Sterling Williams expects the acquisition will be immediately accretive to his company's earnings per share.

Given Cayenne's difficult financial situation and Sterling Software's strong market presence, Cayenne chairman and interim president and CEO John Alexander is confident that "we have made the best decision for our stockholders, customers and business partners."