Micro Focus has bought Borland for $67m and is also buying the application testing business of Compuware.
Compuware described the sale as an $80m transaction.
Micro Focus will pay $1 for each Borland share valuing the firm at $75m including cash reserves, a premium of 25 per cent on Borland's closing price yesterday.
The deal is part of strategic move into application testing and quality management and will cost Micro Focus $40m in restructuring costs.
Micro Focus said both deals would be funded by existing cash and a three year revolving overdraft of $175m from Barclays, HSBC, Lloyds and RBS. In UK legal terms the deal is defined as a reverse takeover.
Borland got rid of its application development tools business last year to concentrate on application testing and management.
The company was one of the trail blazers of the PC revolution in the 80s and into the 90s. However, a series of mis-steps - including a tie-up with wannabe suite vendor WordPerfect and an ill-advised, subsequently reversed, name change - hobbled its progress.
According to today's release, Borland lost $204m in 2008, including impairment of goodwill of $185m.
The deals have both been approved by the relevant boards, but still need shareholder and regulator approval.