Broadcom announced a cash deal to buy CA Technologies for $18.9 billion. Broadcom described CA as a major provider of information technology management software, in an acquisition that would help the chip maker diversify its offerings.
“This transaction represents an important building block as we create one of the world’s leading infrastructure technology companies,” Broadcom chief executive Hock Tan said.The deal was approved by the boards of both companies.
Broadcom will pay $44.50 per share of CA stock; about 20 percent over the closing price for common shares at the end of formal market trading, according to the company.
“We are excited to have reached this definitive agreement with Broadcom,” CA Technologies chief Mike Gregoire said.”This combination aligns our expertise in software with Broadcom’s leadership in the semiconductor industry.”
The companies expected the acquisition to close in the final quarter of this year.