Broadcom and CA Technologies on Wednesday, August 15, announced that Broadcom has agreed to acquire the enterprise technology company for US$18.9 billion in cash.
The acquisition represents a strategic win for Broadcom, furthering its mission to acquire “mission critical technology businesses,” following its failed takeover bid for rival Qualcomm. CA Technologies, which manufactures cloud-based and traditional enterprise software, could help diversify Broadcom, should it gain antitrust approvals in the US, the EU, and Japan. The boards of both companies have already approved the deal.
“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.”
Full Content: Global Legal Chronicle