Broadcom to acquire CA Technologies for $18.9bn
July 12, 2018
Broadcom, a semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, and CA Technologies, a provider of IT management software and solutions, have announced that the companies have entered into a definitive agreement under which Broadcom has agreed to acquire CA to create a leading infrastructure technology company.
The all-cash transaction represents an equity value of approximately $18.9 billion (€16.2bn), and an enterprise value of approximately $18.4 billion.
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.”