Broadcom agrees to buy CA Technologies for $19 billion

Galtero Lara
Julio 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.

Broadcom will pay US$44.50 per share for CA Technologies as part of the deal, which has been approved by the boards of directors of both companies. Based on CA's closing price of $37.21 Wednesday, the offer represents a 20 percent premium for CA shareholders.

Hock Tan, the president and CEO of Broadcom, said that the combination of CA and Broadcom would create "one of the world's leading infrastructure technology companies".

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

The CA deal, outlined in a joint statement from the companies, comes just four months after U.S. President Donald Trump blocked Broadcom's $117 billion hostile bid for semiconductor peer Qualcomm on national security grounds.

Shares of New York-based CA jumped 15 percent in extended trading on reports of the potential deal. Trump said there is "credible evidence" that Broadcom's proposed move to exercise control of Qualcomm "might take action that threatens to impair the national security of the United States".

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