In a surprising move, Broadcom announced on July 11 that it had entered into a definitive agreement to acquire CA Technologies, in a deal valued at $18.9 billion.
Broadcom is best known for its silicon technologies, which including ARM-based processors. CA Technologies, on the other hand, is one of the world's leading software development firms, with a long list of enterprise software offerings.
"This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry," Mike Gregoire, CA Technologies' chief executive officer, wrote in a statement. "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."
Under terms of the agreement, CA shareholders will receive $44.50 in cash per share, which is a 20 percent premium to the closing price of CA common stock on July 11, 2018.
"This transaction represents an important building block as we create one of the world's leading infrastructure technology companies," Hock Tan, president and chief executive officer of Broadcom, stated. "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."
Broadcom's move to acquire CA Technologies comes after the company's failed attempt earlier this year to acquire rival silicon vendor Qualcomm for $44 billion.
Sean Michael Kerner is a senior editor at EnterpriseAppsToday and InternetNews.com. Follow him on Twitter @TechJournalist.