Broadcom signs $19bn CA Technologies deal

(Image credit: Pixabay)

Broadcom has revealed a multi-billion dollar deal to buy enterprise software experts CA Technologies.

The acquisition of the US firm will set Broadcom back $18.9 billion, and sees Broadcom establish a foothold in the enterprise software market for the first time.

The acquisition of CA Technologies is an unusual choice for Broadcom, which has traditionally focused on building computing hardware, particularly semiconductors, for smartphones, PCs and industrial machines.

However company CEO Hock Tan said that the deal, "represents an important building block as we create one of the world's leading infrastructure technology companies." 

Broadcom CA Technologies deal

Last year, Broadcom completed the $5.5bn takeover of networking firm Brocade, giving it an in to the mainframe market which should be strengthened by today's news.

"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," Tan added. "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 CEO. 

"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."

The deal, which is set to close by the end of the year, comes shortly after Broadcom's attempt to buy fellow chipmaker Qualcomm earlier this year.

The audacious $117bn hostile takeover effort fell foul of the Trump administration, which stopped the sale on the grounds of national security.

Following the decision, Broadcom moved its headquarters to the US in a bid to pacify lawmakers.

  • Want to find out more about 5G? Check out our dedicated 5G hub!
Mike Moore
Deputy Editor, TechRadar Pro

Mike Moore is Deputy Editor at TechRadar Pro. He has worked as a B2B and B2C tech journalist for nearly a decade, including at one of the UK's leading national newspapers and fellow Future title ITProPortal, and when he's not keeping track of all the latest enterprise and workplace trends, can most likely be found watching, following or taking part in some kind of sport.