Sanchez Computer Associates Inc. is buying Spectra Securities Software Inc. for approximately $26 million in cash and common stock. Based in Toronto, Spectra is a provider of wealth management software to the investment industry.

Sanchez, based in Malvern, Pennsylvania, will also assume approximately $2.2 million in net debt.

Subject to Spectra shareholder approval and customary closing conditions, Sanchez is expected to complete the transaction near the end of the second quarter. “We expect this transaction to be accretive immediately to earnings, and to fulfill our stated objective of offering the marketplace a comprehensive, integrated wealth management platform,” said Frank Sanchez, chief executive officer.

“Spectra’s management is very enthusiastic about becoming part of the Sanchez team,” said John McLeod, president and CEO of Spectra. “We see a tremendous opportunity to fuel the growth of business by leveraging the strength of the Sanchez brand, professional services capabilities and outsourcing operations. Together, we are a much stronger technology provider with a broader capability. This is exactly what major financial institutions look for in their technology partners.”

Sanchez expects Spectra to contribute approximately $9 million in revenue to Sanchez during the second half of 2002. The deal is expected to be accretive to Sanchez’ earnings.