Broadcom, a semiconductor device supplier to the wired, wireless, enterprise storage and industrial end markets; and CA Technologies, a provider of IT management software and solutions, announced that the companies have entered into a definitive agreement under which Broadcom will acquire CA for an equity value of approximately $18.9 billion.
CA operates across 40 countries and currently holds more than 1,500 patents worldwide, with more than 950 patents pending. Broadcom intends to fund the transaction with cash on hand and $18 billion in new, fully-committed debt financing.
The transaction is subject to customary closing conditions, including the approval of CA shareholders and antitrust approvals in the US, the EU and Japan.
Careal Property Group AG and affiliates, who collectively own approximately 25% of the outstanding shares of CA common stock, have entered into a voting agreement to vote in favour of the transaction. The transaction is expected to close in the fourth quarter of 2018.