CUC International Inc., which specializes in telephone shopping services, on Tuesday made its most expensive and puzzling step in high technology yet, buying two software companies for $2.2 billion.
CUC said it would pay $1.14 billion for Davidson & Associates Inc., a creator of educational software, and $1.06 billion for Sierra On-Line Inc., producer of PC games such as Phantasmagoria and King’s Quest.
The Stamford, Conn.-based company had previously bought two small private firms that specialize in Internet software development or information. One of those, NetMarket Co., helped CUC begin a shopping service on the global public data network.
But analysts had trouble understanding CUC’s latest purchases.
“Unless there’s some hidden agenda, this deal makes very little sense,” said Jeffrey Tarter, editor of Boston-based SoftLetter.
“They’re basically a reseller. It’s never made very good sense for resellers to own suppliers of anything they sell,” he said.
“It’s akin to a department store owning a clothing manufacturer.”
