Broadcom to buy CA Technologies in $19B deal

Cornelia Mascio
Luglio 12, 2018

Broadcom Inc., a semiconductor maker whose acquisitions have reshaped the chip industry, reached an agreement to purchase CA Technologies for about $19 billion, according to a person familiar with the process, branching out into software to diversify its business.

If the deal clears every hurdle and goes through, the $108 billion semiconductor company will pay $44.50 a share for CA in a deal that could go public on Wednesday, the companies say. Based on CA's closing price of $37.21 Wednesday, the offer represents a 20 percent premium for CA shareholders.

It will finance the deal with cash on hand and $18 billion in new debt financing.

Shares of New York-based CA jumped 15 percent in extended trading on reports of the potential deal. Shares of Broadcom were down over 5.5%. CA Technologies sells the software behind database mainframes, cloud computing systems and virtual machine environments.

Broadcom is making another run at buying a US tech company just months after President TrumpDonald John TrumpEx-Russia ambassador: Trump has done more damage to North Atlantic Treaty Organisation in months than Russia has in decades Trump takes credit for increased defense spending by North Atlantic Treaty Organisation allies, but says "it isn't almost enough" Trump questions how Russia probe can "proceed" given Federal Bureau of Investigation agent's private comments MORE blocked the firm's hostile takeover of Qualcomm.

Broadcom CEO Hock Tan was banned from acquiring Qualcomm by President Trump in March.

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