History's largest software-industry merger was announced by Computer Associates International - a $4 billion all-stock buyout of Sterling Software Inc. of Dallas. Sterling, which has a global work force of 3,800 people and more than 20,000 clients, will move its headquarters to Islandia, N.Y., the Long Island base of Computer Associates. The latter employs 18,000 and reported revenues of $6.3 billion last year.
Healtheon/WebMD Corp. said it will pay $5.4 billion to acquire main rival Carelnsite Inc. and its parent, Medical Manager Corp. of Elmwood Park, N.J. The all-stock deal is aimed at making Atlanta-based Healtheon the dominant US company in the delivery of medical care via the Internet. Carelnsite links physicians, patients, and insurance carriers in the exchanging of confidential information. Medical Manager's main business is selling software for the administrative needs of doctors' offices.
Corning Inc., the world's leading supplier of glass fiber, announced a $2 billion deal for NetOptix. The Sturbridge, Mass.-based company makes filters that divide light into different wave lengths, multiplying the volume of data that can be sent through fiber-optic cables.
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