Broadcom to buy CA Technologies

Deal for $19 billion would be first major move since March

Broadcom has agreed to buy the software maker CA Technologies for nearly $19 billion, according to the two companies.

The acquisition by Broadcom, which has become a formidable competitor in the semiconductor market in the past decade, would be the first major move by the company since its $117 billion bid for Qualcomm was blocked by the Trump administration in March.

The Trump administration thwarted the Qualcomm deal citing national security concerns. White House officials said that allowing Qualcomm, a U.S. leader in smartphone chips and wireless technology, to be taken over by a foreign company might strengthen China’s hand in a strategic industry.

Broadcom, then headquartered in Singapore, had stated its intention to move its headquarters to the United States, but that was not enough to allay the administration’s concerns. The company, whose technology is used in everything from smartphones to data centers, has since moved its headquarters to San Jose, Calif.

Broadcom is offering CA Technologies’ shareholders $44.50 a share, about 20 percent higher than their closing price on Wednesday. Broadcom shares declined in after-hours trading, while shares for CA Technologies rose sharply.

CA Technologies, formerly known as Computer Associates, was founded in 1976 as a maker of business programs for mainframe computers. Today, it has a broad range of software products from mainframe programs to cloud-based software for computer security.

Broadcom’s purchase of CA Technologies, analysts said, would not appear to raise any of the national security red flags that the Trump administration said had prompted it to block the Qualcomm bid.