Broadcom to acquire CA Technologies for $18.9 billion

Posted: Updated:

SAN JOSE, Calif. (AP) - Chipmaker Broadcom says it is buying IT management software company CA Technologies for $18.9 billion in cash.

Broadcom CEO Hock Tan says the move is an important building block for the company as it aims to become a world-leading infrastructure technology provider.

The offer for $44.50 in cash is 20 percent higher than the closing price for CA's shares Wednesday. Shares in New York-based CA jumped 16 percent in after-hours trading. Shares in Broadcom, which is based in San Jose, California, dropped 6 percent.

Broadcom says it will pay for the acquisition with $18 billion in new debt. The boards of both companies approved the deal, which is targeted to close by the end of the year.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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