Broadcom acquires CA Technologies for $18.9 billion to help ‘build leading infrastructure company’

Semiconductor giant Broadcom has announced the acquisition of software provider CA Technologies for $18.9 billion (£14.3bn) in cash to ‘build one of the world’s leading infrastructure technology companies.’ The move will aim to give Broadcom a financial boost in a variety of areas. In an investor presentation (PDF), the company cited CA’s ‘significant’ recurring revenue, as well as an improvement on Broadcom’s long-term EBITDA margins as key to the transaction. From a technological perspective, Broadcom cited CA’s mainframe expertise, as well as the company’s ‘continued focus on acquiring established mission critical technology businesses.’ Regular readers of this publication will note how the mainframe, which still stores a surprisingly large amount of enterprise data – up to 80% if you believe CA and IBM – is still a fundamental part of CA’s strategy.