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Broadcom to Buy CA: Let the Head-Scratching Begin

barrons.com
Broadcom to Buy CA: Let the Head-Scratching Begin

Chip giant Broadcom (AVGO) this evening announced it intends to buy venerable software vendor CA (CA) for $18 billion, or $44.50 per CA share in cash, confirming confirming a report by the WSJ this afternoon. This deal is a bit of a head scratcher, and it's not clear the statement by Broadcom CEO Hock Tan really clarifies matters. Said Tan, This transaction represents an important building block as we create one of the world's leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission