Blog

Broadcom will acquire CA Technologies for $18.9 billion, just 4 months after Trump blocked its acquisition of Qualcomm (AVGO, CA)

Category: Home Tech
42 0

Hock Tan Broadcom CEO
Broadcom CEO Hock Tan was banned from acquiring Qualcomm by President Trump in March.
Photo by Martin H. Simon – Pool/Getty Images

Broadcom announced on Wednesday its intent to acquire CA Technologies, an American software company, for $18.9 billion in cash.

The deal was first reported earlier on Wednesday by the Wall Street Journal, and later confirmed by CA Technologies in a press release.

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. The news represents Broadcom expanding beyond processors

News of this deal comes just four months after President Trump blocked Broadcom from acquiring Qualcomm in a $103 billion hostile takeover on the grounds on national security.

Broadcom, which was based in Singapore, has made moves in recent months to increase its presence in the US. The company moved its headquarters to San Jose in April in an effort to secure the ultimately-blocked Qualcomm acquisition.

Broadcom designs and produces the semiconductors used in many smartphones, database networks and wifi networks. CA Technologies sells the software behind database mainframes, cloud computing systems and virtual machine environments.

CA Technologies stock was up over 16% in after-hours trading immediately following the announcement of the deal. Shares of Broadcom were down over 5.5%.

Leave a comment

Shopping cart

×