The infrastructure technology management software solution provider CA Technologies has announced it is entering into a definitive agreement to be acquired by the semiconductor company Broadcom. Broadcom is acquiring the company for $18.9 billion. CA shareholders will receive $44.50 per share in cash.
“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.”
According to Broadcom, the acquisition will drive the company’s long-term adjusted EBITDA margins above 55 percent.
The official acquisition is expected to close in the fourth calendar quarter of this year.
“This transaction represents an important building block as we create one of the world’s leading infrastructure technology companies. 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.”