Broadcom to pay $19B for software firm

Broadcom Inc., a semiconductor-maker whose acquisitions have reshaped the chip industry, reached an agreement to purchase CA Technologies for about $19 billion, according to a person familiar with the process, branching out into software to diversify its business.

Broadcom offered $44.50 per share in a transaction valued at $18.9 billion, said the person, who asked not to be identified. Broadcom and CA representatives didn’t immediately respond to requests for comment.

Under Chief Executive Officer Hock Tan, Broadcom has transformed itself through a string of acquisitions into one of the world’s largest chip makers. Last year, Tan launched an ambitious attempt to grow even bigger — through the purchase of rival mobile-chip maker Qualcomm Inc. That hostile takeover bid was blocked in March by the U.S government on national-security grounds. With a deal for CA, Broadcom is seeking to move into software used to manage business planning and other processes.

After the rejection of its Qualcomm bid, the San Jose, Calif.-based company — which relocated its headquarters to the U.S. from Singapore earlier this year — had said it would probably avoid large purchases and concentrate on returning cash to shareholders in the form of stock buybacks and dividends.