Broadcom acquires CA Technologies for US $18.9 billion

0
270

In a rather surprising move for Wall Street, Broadcom has announced the purchase of CA Technologies, in a deal worth US $18.9 billion.

Although The Wall Street Journal caught the acquisition earlier, which pushed the CA Technologies’ stock up by 16 percent and had a 5.5 percent impact on Broadcom shares, the deal in which Broadcom purchased the performance monitoring and software company CA Technologies took Wall Street by surprise.

The deal comes at a rather interesting time for Broadcom, which recently cut 1,100 employees, blaming it on a US $5.9 billion acquisition of Brocade as well as its recent attempt of hostile takeover of Qualcomm, which was shot down by the US president, Donald Trump, due to a national security risk to the United States.

This will further diversify Broadcom’s product portfolio but comes at a strange time considering that CA Technologies focus on big servers that are being replaced by cloud computing. Broadcom can use CA Technologies for its network gear business but it will not have a big impact in the future of the company.

According to details provided in the official press release, the company said that the acquisition is a part of its strategy to buy “established mission-critical technology businesses”. CA Technologies is not a stranger to acquisitions as the company has managed to diversify its portfolio in the same way, pushing it into anti-virus, security, ID management, applications performance monitoring, DevOps automation and other markets.

“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”, said Hock Tan, Broadcom President and CEO.

 

SHARE
Previous articleSecurity is the top concern in Data Center Switch vendor choice
Next articleWebinar: Welcome to the wonderful world of GDPR
Slobodan Simic is foremost an IT enthusiast who discovered his knack for writing, which lead to becoming both an IT journalist and later an Editor for a number of publications. He has been covering anything from the consumer- and professional-oriented hardware to software markets and networks. With a focus on chasing down leads, making sure that fresh content is ready for publishing, as well as keeping up with the evergrowing and evolving IT world, writing has become more of his passion rather than just a job.