Novell to Purchase SilverStream Software

Novell Inc., which makes computer-network software, agreed to buy SilverStream Software Inc. for about $212 million to add programs to run Web applications.

SilverStream shares jumped 73%. Novell will pay $9 a share.

After losing ground to Microsoft Corp. for operating-system software in recent years, Novell has focused on selling software to manage Web-based programs across different operating systems. The SilverStream purchase will allow Novell to compete against Microsoft, Sun Microsystems Inc. and IBM Corp., an analyst said.

Shares of Billerica, Mass.-based SilverStream rose $3.76 to $8.90, and shares of Provo, Utah-based Novell rose 11 cents to $3.36, both on Nasdaq.