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 …read more