Broadcom to buy CA Technologies for USD 18.9 billion

Nieuws IT Wereld 12 JUL 2018
Broadcom to buy CA Technologies for USD 18.9 billion

Broadcom has agreed to buy CA Technologies for USD 18.9 billion. The company said the takeover will help it meet the growing demand for infrastructure software, adding CA's mainframe and enterprise software, extensive customer base and recurring revenues to its portfolio. 

CA agreed to the bid of USD 44.50 per share cash, a premium of 20 percent on its share price the day before the deal was announced. 

Broadcom said the takeover is expected to increase its adjusted EBITDA margin to over 55 percent and add immediately to adjusted EPS. Together the two companies will have annual revenues of USD 23.9 billion and adjusted EBITDA of USD 11.6 billion.

Broadcom intends to fund the takeover with cash on hand and USD 18 billion in new, fully-committed debt financing. This should not affect its investment-grade credit rating, the company said, given its strong cash flow generation and intention to rapidly de-leverage.

Subject to shareholder and regulatory approval, the takeover is expected to close in Q4 2018. 

Categories:

IT

Companies:

Broadcom,  CA Technologies

Regions:

Wereld

Tags:

Enterprise equipment, IT - applications, M&A buyouts & divestments

Related Articles

WERELD 3 JUL 2019

Broadcom close to deal to acquire Symantec - report

Broadcom is in advanced talks to buy cybersecurity firm Symantec, sources familiar with the matter told Bloomberg. The takeover is expected to help Broadcom diversify its business beyond semiconductors, after already buying software company CA last year. 

VERENIGDE STATEN 6 NOV 2018

Broadcom completes buy of CA Technologies, sells Veracode for USD 950 mln in cash

Broadcom said it has completed the USD 18.9 billion acquisition of CA Technologies. The deal was first announced in July but then hit a short hiccup in October, when a forged memo said it needed to be reviewed by the Committee on Foreign Investment (CFIUS). The deal nevertheless closed a bit earlier than expected. The CA Technologies shares will stop trading on the Nasdaq.

WERELD 24 OCT 2018

Broadcom expands family of Wi-Fi 6 products with new mesh networking platforms

Broadcom released two new highly integrated SoCs, BCM6752 and BCM6755, which combine the benefits of 802.11ax with mesh networking, allowing operators to provide subscribers a premium whole Wi-Fi experience based on Wi-Fi 6 technology announced by the Wi-Fi Alliance. The company said its new platforms were specifically designed to enable a variety of high-performance smart repeater configurations that allow faster download and upload speeds, high capacity, better coverage, lower latency and enhanced batter

VERENIGDE STATEN 11 OCT 2018

Broadcom says memo calling for govt review of CA Technologies buy is a forgery

Broadcom said it has been informed by the US Department of Defense that a memo circulating among US Senators and members of Congress about its planned takeover of CA Technologies is a forged document. The memo references the possible need for a review of the acquisition by the Committee on Foreign Investment (CFIUS). Broadcom highlighted the fact that both it and CA Technologies are US companies and that there is no basis in fact or law for a CFIUS review. 

WERELD 8 OCT 2018

Broadcom launches gigabit-capable PHY, secure switch, smart camera MCU

Broadcom announced its latest portfolio of automotive Ethernet devices designed to advance in-vehicle connectivity, infotainment, advanced driver assistance systems (ADAS) and smart mobility. The company expands its portfolio with the addition of 1000BASE-T1 PHY, secure switch and smart camera MCU devices to address new and emerging applications.

WERELD 7 SEP 2018

Broadcom revenues up 1% for in-line Q3, starts shipping new Wi-Fi chips

Broadcom has reported results for its fiscal third quarter to 5 August, saying results came in line with expectations, with Datacenter demand driving strong growth for over 50 percent of consolidated revenues. CFO Tom Krause noted the company returned USD 5.38 billion to shareholders and that it intends to return 50 percent of the previous year's free cash flow in the form of cash dividends. With the rest of the free cash flow, the company will fund a combination of share buybacks and acquisitions. Broadco

WERELD 12 JUL 2018

Broadcom koopt CA Technologies voor USD 18,9 miljard

Broadcom neemt CA Technologies over voor USD 18,9 miljard. De Amerikaanse chipmaker zegt in een toelichting dat de overname van CA Technologies helpt meer armslag te krijgen op het gebied van infrastructure/enterprise software. CA ging akkoord met een bod van USD 44,50 per aandeel, een premium van 20 procent van de aandelenprijs op de dag dat de deal werd aangekondigd. Broadcom zei dat de overname de ebitda-marge met 55 procent doet toenemen. De gecombineerde entiteit heeft een jaarlijkse omzet van USD 23,

WERELD 9 JUN 2018

Broadcom advances revenues 20% in mixed Q2

Broadcom said revenues for its fiscal second quarter to end May came in within its updated expectations, up 20 percent from the year before to USD 5.014 billion. All segments contributed to the increase, with Wired Infrastructure revenue up 9 percent, Wireless Communications rising 13 percent, Enterprise Storage jumping 63 percent and Industrial & other lifting 21 percent. The company has kept its quarterly dividend at USD 1.75 per share.

WERELD 1 MAY 2018

Broadcom narrows Q2 guidance amid strong wired, weak wireless

Broadcom has provided more information about its second fiscal quarter to 6 May. CEO Hock Tan said the company is seeing robust demand from data centres, driving strong growth at Broadcom's wired and enterprise storage segments, but wireless is weak. This trend is expected to continue into the company's third fiscal quarter. For fiscal Q2, Broadcom is now guiding for adjusted revenues of USD 5 billion, plus or minus USD 25 million. The original forecast had been for revenues of USD 5 billion, plus or minus

WERELD 13 APR 2018

Broadcom approves share buyback programme of up to USD 12 bln

Broadcom has approved the buyback of up to USD 12 billion worth of share. The approval will be in place until 3 November 2019, the end of Broadcom's fiscal year 2019. CFO Tom Krause said the company will maintain its policy of delivering 50 percent of trailing 12-month free cash flow to shareholders in the form of dividends, using the balance for buybacks, as well as acquisitions.

VERENIGDE STATEN 5 APR 2018

Broadcom completes move to US

Broadcom announced that it's completed its move to the US from Singapore, in line with the earlier announced deadline. Following the redomiciliation process, it's now a Delaware-based corporation, with a head office in California.

WERELD 16 MAR 2018

Broadcom lifts revenues almost 30% in strong Q1

Broadcom will again distribute a dividend of USD 1.75 per share, which last quarter was upped by over 70 percent. The move comes after a solid fiscal first quarter, with revenues well within guidance, advancing almost 30 percent from the year before to USD 4.139 billion. Growth was helped by the fact that the fiscal quarter has one extra week compared to the year earlier and by contributions from earlier acquired Brocade Communications Systems. 

VERENIGDE STATEN 14 MAR 2018

Broadcom withdraws offer for Qualcomm, will still relocate headquarters to US

Broadcom has issued a statement saying it has officially withdrawn and terminated its offer to acquire Qualcomm. With this decision, it also withdraws its slate of independent director nominees for Qualcomm's upcoming AGM. The company said it was disappointed with the decision made by the White House, which said it did not want the takeover to take place on the back of security concerns but that it would respect that decision.  

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.