Ailing Cullinet to be Acquired by Competitor

The world’s biggest independent software company, Computer Associates International Inc., is adding another financially troubled competitor to its fold with an agreement Monday to buy Cullinet Software Inc. for about $320 million in stock.

The deal would unite the first billion-dollar software company with a former No. 1, Cullinet, which has not made an annual profit since 1986 and put itself up for sale earlier this year.

Analysts said they expect Computer Associates to follow its tradition of slashing jobs at new acquisitions, a possibly painful prospect for John Cullinane, the founder, chairman and biggest stockholder of Cullinet.

Computer Associates approached Cullinet about a merger last year but was rebuffed.