Broadcom Completes CA Technologies Acquisition, Sells Veracode to Private Equity Firm
Broadcom has completed the CA Technologies acquisition for $18.9 billion, and has already sold off a CA business unit — DevOps security testing specialist Veracode — to Thoma Bravo for $950 million, the companies confirmed today.
Veracode’s SaaS platform allows DevOps teams to test software for security holes. CA had acquired Veracode for $614 million in cash in March 2017.
How Broadcom Will Manage CA Technologies
CA now operates as a Broadcom subsidiary. CA veterans Greg Lotko and Ashok Reddy shift to Broadcom as SVP & General Manager of the Mainframe Division and SVP & General Manager of the Enterprise Software Division, respectfully.
Broadcom is evangelizing CA’s power as a mainframe software provider — noting that mainframes process approximately 30 billion transactions per day and $7 trillion of credit card payments annually, according to IBM and other third-party sources.
Wall Street is watching Broadcom closely for potential CA-related headcount updates or changes. Broadcom CEO Hock Tan is known as an aggressive cost cutter. ChannelE2E will closely track Broadcom’s next earnings call, scheduled for December 6, for potential headcount and staffing clues.
How Broadcom Will Support CA Technologies’ MSPs
Meanwhile, MSPs will be watching Broadcom closely to see how the company manages CA’s service provider software portfolio.
CA has close relationships with several hundred midmarket and enterprise service providers. The software company has developed so-called whitespace assessments to help those MSPs pinpoint next-generation recurring revenue opportunities with customers. Among the key focus areas: Docker and container monitoring, application performance monitoring, and SaaS-oriented services.
CA had planned to emphasize MSP relationships during the CA World 2018 conference later this month. But Broadcom cancelled the mid-November event back in September, in order to focus on the completing the CA buyout and associated strategic plan for the combined companies.