Broadcom snaps up CA Technologies for $25 billion - Software

Broadcom agrees to buy CA Technologies for $18.9 billion

The chipmaking giant Broadcom, which was recently blocked from a mega-merger with competitor Qualcomm by Donald Trump over national security concerns, is buying software giant CA Technologies in a fresh bid to enter the U.S. market.

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.

With CA in the fold, the new Broadcom will derive 28 percent of revenue from software from nothing today. Last year, Tan launched an ambitious attempt to grow even bigger - through the purchase of rival mobile-chip maker Qualcomm Inc.

CA Technologies stock was up over 16% in after-hours trading immediately following the announcement of the deal.

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Broadcom is paying a 20 percent premium from CA's closing price Wednesday.

The takeover would be a major strategic move for Broadcom, coming just months after its $100 billion-plus hostile bid for Qualcomm Inc. was blocked by President Donald Trump.

According to Broadcom, CA Technologies will add recurring revenue, make it a larger enterprise player and ultimately a company focused on infrastructure technology.

The agreement was reported earlier Wednesday by the Wall Street Journal.

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