Reports: Broadcom Nearing Deal To Buy CA Technologies For $19B
Chip maker Broadcom is close to a deal to acquire software vendor CA Technologies for as much as $18.9 billion, according to reports from The Wall Street Journal and Bloomberg, citing people familiar with the matter.
San Jose, Calif.-based Broadcom will pay $44.50 per share for CA Technologies as part of the deal, which could be announced later today, according to the news outlets.
Representatives from Broadcom and CA Technologies did not immediately respond for comment by press time.
New York-based CA Technologies stock soared nearly 16 percent in after-hours trading to $43.10 per share following the Broadcom acquisition news. Shares of Broadcom fell about 5 percent to $229.98 per share during after-hours trading. Broadcom has a market cap of $108 billion, while CA Technologies has a market value of $15.6 billion.
The news comes just four months after Broadcom's bid to buy Qualcomm for a whopping $121 billion was shut down by President Donald Trump who citing national security concerns. President 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."
In November, Broadcom completed its acquisition of Brocade Communications for $5.9 billion to boost Broadcom's position in enterprise storage and networking.