Broadcom completed its previously announced acquisition of CA Technologies (NASDAQ: CA).
CA will operate as a wholly owned subsidiary of Broadcom.
"Today, we are pleased to complete this transaction, which strengthens Broadcom's position as a leading provider of semiconductor and infrastructure software solutions and enables us to better serve our customers," said Hock Tan, President and Chief Executive Officer of Broadcom. "Broadcom has a track record of successfully integrating and growing the businesses we acquire. We believe this transaction will enable us to offer customers a leading portfolio of best-in-class solutions across a diverse set of technologies. We intend to invest in and grow the CA business to further enhance its capabilities in mission-critical infrastructure software solutions."
Broadcom to acquire CA Technologies for $18.9 billion
CA, which was founded by Charles Wang and Russell Artzt in 1976 and formerly known as Computer Associates, is one of the world's leading providers of information technology (IT) management software and solutions. The company is based in New York City and is primarily known for its B2B mainframe, distributed computing, and enterprise software.
Broadcom notes that CA benefits from predictable and recurring revenues with the average duration of bookings exceeding three years.
Hock Tan, President and Chief Executive Officer of Broadcom, said, "This transaction represents an important building block as we create one of the world's leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions."
"We are excited to have reached this definitive agreement with Broadcom," said Mike Gregoire, CA Technologies Chief Executive Officer. "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry. The benefits of this agreement extend to our shareholders who will receive a significant and immediate premium for their shares, as well as our employees who will join an organization that shares our values of innovation, collaboration and engineering excellence. We look forward to completing the transaction and ensuring a smooth transition."
