Broadcom Inc, a major supplier of semiconductor devices, announced acquisition of New York-based software solutions provider CA Technologies. The deal represents an equity value of approximately $18.9 Bn, and an enterprise value of approximately $18.4 Bn. Under the terms of the agreement, the shareholders of CA will receive a per-share premium of about 20% to the closing price of the company on July 11, 2018. The announcement comes just several months after President Trump’s administration blocked Broadcom from a hostile takeover of hardware company Qualcomm.
Broadcom is a global chip manufacturer, supplying the wired, wireless, enterprise storage, and industrial end markets. The portfolio of the company includes: home connectivity, set-top box, broadband access, telecommunications equipment, smartphones and base stations, as well as data center networking. The deal will further diversify company’s offerings.
“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 technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions,” said Hock Tan, CEO, and President of Broadcom.
The transaction has to be approved by CA shareholders and antitrust authorities in the U.S., the EU and Japan and is expected to be finalized until the end of 2018.