5 Things To Know About Broadcom's 'Hail Mary' CA Acquisition

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Broadcom acquisition

Broadcom's Big Bet On CA Technologies

Broadcom confirmed on Wednesday its intent to acquire software specialist CA Technologies in an all-cash deal valued at $18.9 billion.

The San Jose, Calif.-based chip maker will pay $44.50 per share for CA Technologies in a deal that has already been approved by the board of directors for both companies. The acquisition price represents a premium of approximately 20 percent to the close price of CA common stock as of July 11.

Following Broadcom's failed attempt this year to acquire Qualcomm for $121 billion, Zeus Kerravala, principal analyst at ZK Research, said Broadcom is striving to make some type of market splash this year to generate new revenue opportunities. But the acquisition of CA is a leap for Broadcom.

"This deal is pretty close to a Hail Mary pass," said Kerravala. "There's no really tight synergies here."

Here are five things you need to know about Broadcom's acquisition of New York-based CA Technologies.

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