Broadcom to Buy CA Technologies for $19 Billion

Marco Green
July 12, 2018

Broadcom has agreed to buy software maker CA Technologies for about $19 billion, an acquisition that suggests the chipmaker is ready to branch out in a new direction.

Broadcom offered $44.50 per share in a transaction valued at $18.9 billion, said the person, who asked not to be identified ahead of an announcement that will come later Wednesday. The agreement represents a premium of approximately 20 percent to the closing price of CA common stock on 11 July, the companies said in a release. The acquisition - which still needs the approval of CA shareholders and regulators in the US, EU and Japan - is expected to close by the end of this year.

The takeover would be a major strategic move for Broadcom, coming just months after its $100 billion-plus hostile bid for Qualcomm Inc. was blocked by President Donald Trump.

CA Technologies stock was up 15.6% in after hours trading immediately following reports of the deal. Shares of Broadcom were down over 5.5%.

According to Broadcom, CA Technologies will add recurring revenue, make it a larger enterprise player and ultimately a company focused on infrastructure technology.

Broadcom CEO Hock Tan was banned from acquiring Qualcomm by President Trump in March.

Other reports by Click Lancashire

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