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CA Inc. (CA) said Monday it was buying privately held Arcot Systems Inc. for $200 million, while Citrix Systems Inc. (CTXS) said it was acquiring a virtualization-management software company, in acquisitions that underscore the ongoing consolidation of the software sector.

CA, based in Islandia, N.Y., said Arcot's fraud-prevention and authentication software would broaden its portfolio of products. Arcot, based in Sunnyvale, Calif., makes software that helps prevent credit-card transaction fraud.

Separately, Fort Lauderdale, Fla., company Citrix, a leader in virtualization software, said it was buying VMLogix Inc. for an undisclosed sum. VMLogix, based in Palo Alto, Calif., makes software that helps customers manage both private and public cloud computing, which lets data and applications be accessed remotely.

The acquisitions come against a backdrop of dealmaking in the software sector, which is rapidly consolidating as companies look for targets that have products that can put them ahead of the competition. In particular, firms making security software and software behind cloud computing have proved enticing targets.

Earlier this month, chip giant Intel Corp. (INTC) said it would pay $7.7 billion for McAfee Inc. (MFE), the market's No. 2 software security company by revenue after Symantec Corp (SYMC). Hewlett-Packard Co. (HPQ) and Dell Inc. (DELL) have been engaged in a fierce bidding war for hardware-and-software maker 3Par Inc. (PAR), which enables cloud-based storage. On Friday, The Wall Street Journal reported that ArcSight Inc. (ARST), a security software maker, had put itself up for sale.

CA said the acquisition of Arcot would weigh on its bottom line for the year ending March 31. The deal is expected to close within a month.

In late-afternoon trading, CA shares are down about 0.7% on Monday, at $18.17.

VMLogix's server-virtualization management tools are among the hottest in the fast-growing virtualization space. Virtualization is a key driver of cloud computing. The market for server-virtualization management is expected to grow at a compound annual growth rate of 39.2% between 2009 and 2014, reaching a market value of $2 billion in 2014, according to Gartner.

Citrix shares are down slightly to $58.65.

The software deals come amid a broader consolidation of the technology space. On Monday, Intel said it had agreed to buy the wireless unit of Germany's Infineon Technologies AG (IFX.XE) for $1.4 billion (EUR1.1 billion) in cash.

-By Jeanette Borzo, Dow Jones Newswires, 415 765 8230; jeanette.borzo@dowjones.com

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