Broadcom agrees to buy CA Technologies for $19 billion

12 July, 2018, 17:35 | Author: Eric Barnett
  • Hock Tan Broadcom CEO

Broadcom said it will acquire CA Technologies for $18.9 billion in cash in a move that broadens its reach into software.

Broadcom will pay US$44.50 per share for CA Technologies as part of the deal, which has been approved by the boards of directors of both companies. Broadcom and CA representatives didn't immediately respond to requests for comment.

Hock Tan, CEO of Broadcom, said CA Technologies will be "an important building block" and the company can utilize a large base of new customers. Last year, Tan launched an ambitious attempt to grow even bigger - through the purchase of rival mobile-chip maker Qualcomm Inc. CA Technologies sells the software behind database mainframes, cloud computing systems and virtual machine environments.

Shares of New York-based CA jumped 15 percent in extended trading on reports of the potential deal. Broadcom stock fell 5.5 percent.

The CA deal comes just four months after Broadcom's bid to buy Qualcomm for a whopping US$121 billion was shut down by USA president Donald Trump who citing national security concerns. The company moved its headquarters to San Jose in April in an effort to secure the ultimately-blocked Qualcomm acquisition.

The agreement was reported earlier Wednesday by the Wall Street Journal.



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