Leading global semiconductor firm Broadcom has revealed that it has agreed financial terms to acquire CA Technologies in a deal valued at $18.9bn.
CA Technologies is considered to be one of the world’s leading providers of IT management software and solutions, helping organisations of all sizes to develop and manage complex IT frameworks that in turn help companies to enhance their competitiveness and productivity.
“This transaction represents an important building block as we create one of the world's leading infrastructure technology companies,” said Hock Tan, President and CEO of Broadcom.
“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.”
The acquisition comes just four months after US President Donald Trump blocked Broadcom’s hostile takeover of Qualcomm that was valued at $103bn, citing national security as the reasoning behind this.
As a result, the CA deal will provide Broadcom with alternative means of expansion that the company has been looking for, obtaining the firm’s entire operational portfolio that spans across 40 different countries.
“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.”