e-Business software maker Intraware said Thursday that is selling off parts of its business to Islandia, NY-based Computer Associates, which resells many of its products.

The $9.5 million deal cover's Orinda, Calif.-based Intraware's Asset Management software business including its Intraware Argis, Intraware Content Control and Intraware ContractDirector product lines.

Computer Associates said it intends to fold the technology into its Unicenter family of infrastructure management solutions, but won't get much more specific than that until after the sale closes in about two weeks.

Current customers of the Intraware's solution include Sun One, Inc., PeopleSoft, Inc., Documentum, Inc., and Level 3 Communications, Inc.

Intraware said it will spend up to $1.5 million as a part of lease termination costs, employee severance costs, legal fees, and accounting fees. Half of the sale's proceeds will be going toward repayment of Intraware's existing $7 million notes payable. The company said it will payoff the remaining notes payable during the next three months.

"This transaction allows us to focus completely on the large opportunity for Intraware in the electronic software delivery and management market," said Intraware CEO Peter Jackson. "Our SubscribeNet solution is a leading product in the ESDM market, and the fiscal 2003 revenue growth rate from SubscribeNet is expected to exceed IDC's ESDM market compounded annual growth rate over the next five years of 46 percent. In addition, once closed, this sale will significantly strengthen our balance sheet while minimizing dilution to our shareholders."

The company maintains its guidance of achieving net income profitability by the fourth quarter of fiscal year 2003.

Concurrent with the sale of the Asset Management business, Intraware has applied to transfer its listing to The NASDAQ SmallCap Market.

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