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Business software company CA Technologies said Wednesday that it agreed to buy privately held Interactive TKO Inc. for $330 million in cash.

Islandia, N.Y.-based CA said the purchase expands its IT management portfolio to include software that allows developers to simulate how their applications would work.

"ITKO's technology allows customers to anticipate how their applications will perform in alternate environments, significantly reducing risk," said David Dobson, CA customer services group executive vice president, in a statement.

CA expects the deal to be completed in three months. The company expects it will trim profit in fiscal 2012 and 2013 but to add to 2013 adjusted earnings.

Plano, Texas-based Interactive TKO had $39 million in revenue for the year that ended March 31, more than double the previous year. The company's CEO, Shridhar Mittal, will join CA along with Interactive TKO's 120 employees.

CA Inc. shares finished regular trading up 16 cents at $22.63.

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