Broadcom confirms $18.9 billion acquisition of CA Inc.

Discussion in 'Market News' started by sniper-academy, Jul 12, 2018.


Draft saved Draft deleted
  1. sniper-academy

    sniper-academy Administrator Staff Member

    Joined:
    Sep 30, 2011
    Messages:
    269,643
    Likes Received:
    5
    Broadcom Inc. announced late Wednesday afternoon that it has agreed to acquire CA Inc. for $44.50 a share, confirming earlier reports. Broadcom said the price represents an equity value of $18.9 billion and an enterprise value of $18.4 billion for the software company. "This transaction represents an important building block as we create one of the world's leading infrastructure technology companies," Broadcom Chief Executive Hock Tan said in Wednesday's announcement. "With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses." Broadcom said the deal would be immediately accretive to its non-GAAP EPS and help drive long-term adjusted margins higher than 55%. Broadcom is funding the deal with $18 billion in debt financing and cash on hand, and expects the deal to close in the fourth quarter. Broadcom shares dropped 5.9% in late trading Wednesday, after closing with a 2.8% decline; CA shares jumped 15.6% to $43 after the initial reports, and were halted ahead of the official announcement at 7:30 p.m. Eastern time.

    Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

    [​IMG]
    [​IMG] [​IMG] [​IMG] [​IMG]

    Continue reading...
     
Loading...

Share This Page