It’s Merger Monday.

Pegasystems (PEGA) this morning said it agreed to buy Chordiant Software (CHRD) for $5 a share in cash. Pegasystems focuses on business process management software; Chordiant sells CRM software and services. The deal is worth $161.5 million.

Chordiant had 2009 revenue of $76.3 million; it has $52.3 million in cash.

PEGA said the deal should be accretive by as much as 3 cents a share to 2010 earnings and as much as20 cents for 2011.

CHRD is up $1.17, or 30.7%, to $4.98; PEGA is up $1.45, or 3.9%, to $38.28.

Article courtesy of BARRONS.com: Tech Trader Daily