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Rational Software to Acquire SQA

November 13, 1996|Times Staff and Wire Reports

Santa Clara-based Rational Software Corp. agreed to acquire SQA Inc. for stock valued at $282.4 million. The maker of software for telecommunications and aerospace businesses said it will pay 0.86 share for each outstanding share of SQA, or $35.26 a share. SQA, of Burlington, Mass., makes software that tests how well applications work on computer networks. "This probably fills an area where they [Rational] were weak competitively," said Catlin Wolfard, an analyst at Arcadia Investment Corp. "SQA is an acknowledged leader in Windows-based testing software." Rational Software said it will take a charge to cover costs of the SQA purchase in its fiscal fourth quarter ending in March. SQA shares dropped 25 cents to close at $25.50. Rational Software dropped 75 cents to $41.

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