iTWire - Broadcom seeks to acquire CA Technologies for US $18.9 billion
Semiconductor and hardware company Broadcom wants to buy out enterprise software maker CA Technologies for US$18.9 billion, and while some synergies are there, some online seem surprised. Promising to build "one of the world's leading infrastructure technology companies", Broadcom has been looking for a dancing partner to acquire even before its ultimately failed bid to buy out Qualcomm, the maker of 4G and other chips used in many of the world's top smarthphones, and that partner looks set to be CA Technologies. Naturally, Broadcom has promoted the move as continuing its "focus on acquiring established mission critical technology businesses" while "providing Broadcom with significant recurring revenue", with the deal expected to close "in the fourth calendar quarter of 2018". The all-cash transaction represents an equity value of approximately US$18.9 billion, and an enterprise value of approximately US$18.4 billion." Hock Tan, president and chief executive 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." Mike Gregoire, CA Technologies chief executive, said: "We are excited to have reached this definitive agreement with Broadcom. "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry.