Broadcom has reached an agreement to acquire CA Technologies for $19 billion, according to this report from Bloomberg. The deal is Broadcom’s largest since its $5.9 billion acquisition of networking equipment provider Brocade Communications in November 2016, and comes four months after Broadcom CEO Hock Tan’s $117 billion hostile takeover bid for Qualcomm was thwarted by President Trump on national security grounds.
CA Technologies is one of the oldest software companies, launching in 1976 with an initial focus on mainframe computers. Today, CA Technologies also makes products for testing and developing cloud applications, monitoring networks, and securing applications, among other offerings. Since some of these segments are new to Broadcom, the chipmaker presumably will use CA Technologies to enter new markets, such as software for managing internet-connected devices.