Broadcom acquired CA Technologies (CA, Inc.) for $18.9 billion, a transaction completed in November 2018, structured as all cash.
CA Technologies (CA, Inc.) operates in Infrastructure software, is based in New York, New York, USA. Broadcom's first major move beyond semiconductors, acquiring CA Technologies, a leading provider of IT management and mainframe/enterprise software. The deal added a large installed base of recurring software revenue and marked the start of Broadcom's infrastructure-software build-out. CA operates as a wholly owned subsidiary.
Builds one of the world's leading infrastructure technology companies, expands Broadcom's TAM into the fragmented infrastructure software market, and adds significant recurring revenue expected to lift long-term adjusted EBITDA margins above 55%.
Sizeable installed customer base and sticky mainframe/enterprise software franchises generating recurring revenue. Expected to drive long-term adjusted EBITDA margins above 55% and be immediately accretive to non-GAAP EPS. CA operates as a wholly owned subsidiary of Broadcom; Greg Lotko joined Broadcom as SVP & GM of the mainframe business.
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.Hock Tan, President and CEO, Broadcom
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.Mike Gregoire, CEO, CA Technologies
Advisory firms were not disclosed for this transaction.