Broadcom to buy CA Technologies for nearly $19 billion

Singaporean chipmaker Broadcom has signed an agreement with CA Technologies to acquire the company for $18.9 billion. Both companies have announced this. Broadcom hopes the acquisition will be completed before the end of the year.

Broadcom will pay shareholders $44.50 per share, the company reports. Broadcom does not state exactly why it would like to acquire CA Technologies, but does say that after the acquisition it will also have knowledge in the field of software in addition to expertise in the semiconductor industry. CA Technologies makes software for the business market.

The American chipmaker says it expects to achieve a higher gross profit in the coming years thanks to the acquisition. Broadcom must obtain approval in Japan, the US and the EU to acquire CA. CA has its headquarters in New York, but since the acquisition of WatchMouse in 2011, there is also a branch in Utrecht. The company employs more than ten thousand people. Broadcom had long wanted to take over American competitor Qualcomm, but the American government stopped it.