SAN JOSE, Calif., Nov. 5, 2018 /PRNewswire/ -- Broadcom Inc.
(NASDAQ: AVGO), a global technology leader that designs, develops
and supplies semiconductor and infrastructure software solutions,
today announced that it has completed its acquisition of CA
Technologies (NASDAQ: CA) ("CA").
CA's common stock will now cease to be traded on the NASDAQ and
CA will operate as a wholly owned subsidiary of Broadcom.
"Today, we are pleased to complete this transaction, which
strengthens Broadcom's position as a leading provider of
semiconductor and infrastructure software solutions and enables us
to better serve our customers," said Hock Tan, President and Chief
Executive Officer of Broadcom. "Broadcom has a track record
of successfully integrating and growing the businesses we
acquire. We believe this transaction will enable us to offer
customers a leading portfolio of best-in-class solutions across a
diverse set of technologies. We intend to invest in and grow
the CA business to further enhance its capabilities in
mission-critical infrastructure software solutions."
Tan continued, "We are excited to announce that in connection
with the completion of the CA transaction, Greg Lotko, previously at CA, has joined
Broadcom as SVP & General Manager of the Mainframe Division and
Ashok Reddy, previously at CA, has
joined Broadcom as SVP & General Manager of the Enterprise
Software Division. We would also like to welcome the
outstanding team of employees at CA to the Broadcom family."
Mainframes remain the backbone of the enterprise-computing
environment, running mission-critical applications. It is
estimated that mainframes process approximately 30 billion
transactions per day and $7 trillion
of credit card payments annually.1 Given the
importance of mainframes to large enterprises, Broadcom believes
the acquisition of CA provides a strong and stable market
opportunity for the company.
CA's Enterprise Software solutions link everything from mobile
to mainframe, integrating systems of record, providing AI-driven
systems to deliver business agility with quality, security, and
compliance. Enterprise Software solutions for both private
and public cloud consists of Project Portfolio Management, Agile
Planning and Requirements, Automation, API Management, Continuous
Testing, Security, and AIOps. The Total Addressable Market
(TAM) for these solutions continues to grow and Broadcom believes
there are significant future opportunities in this market.
About Broadcom Inc.
Broadcom Inc. (NASDAQ: AVGO), a Delaware corporation headquartered in
San Jose, CA, is a global
technology leader that designs, develops and supplies a broad range
of semiconductor and infrastructure software solutions. Broadcom's
category-leading product portfolio serves critical markets
including data center, networking, software, broadband, wireless,
storage and industrial. For more information, go to
www.broadcom.com.
Cautionary Note Regarding Forward-Looking
Statements
This communication contains forward-looking
statements (including within the meaning of Section 21E of the
United States Securities Exchange Act of 1934, as amended, and
Section 27A of the United States Securities Act of 1933, as
amended) concerning Broadcom. These statements include, but are not
limited to, statements regarding the expected benefits and costs of
the transaction, management plans relating to the transaction, and
statements that address our expected future business and financial
performance and other statements identified by words such as
"will," "expect," "believe," "anticipate," "estimate," "should,"
"intend," "plan," "potential," "predict," "project," "aim" and
similar words, phrases or expressions. These forward-looking
statements are based on current expectations and beliefs of the
management of Broadcom, as well as assumptions made by, and
information currently available to, our management, current market
trends and market conditions and involve risks and uncertainties,
many of which are outside of our and our management's control, and
which may cause actual results to differ materially from those
contained in forward-looking statements. Accordingly, you should
not place undue reliance on such statements.
Particular uncertainties that could materially affect future
results include risks associated with: our acquisition of CA,
including (1) potential difficulties in employee retention,
(2) unexpected costs, charges or expenses, and (3) our
ability to successfully integrate CA's business and achieve the
anticipated benefits of the transaction; any loss of our
significant customers and fluctuations in the timing and volume of
significant customer demand; our dependence on contract
manufacturing and outsourced supply chain; our dependency on a
limited number of suppliers; any other acquisitions we may make,
including integrating acquired companies with our existing
businesses and our ability to achieve the benefits, growth
prospects and synergies expected by such acquisitions; our ability
to accurately estimate customers' demand and adjust our
manufacturing and supply chain accordingly; our significant
indebtedness, including the additional significant indebtedness
that we have incurred in connection with the CA transaction and the
need to generate sufficient cash flows to service and repay such
debt; dependence on a small number of markets and the rate of
growth in these markets; dependence on and risks associated with
distributors of our products; dependence on senior management;
quarterly and annual fluctuations in operating results; global
economic conditions and concerns; the amount and frequency of our
stock repurchases; cyclicality in the semiconductor or enterprise
software industry or in target markets; our competitive performance
and ability to continue achieving design wins with our customers,
as well as the timing of any design wins; prolonged disruptions of
our or our contract manufacturers' manufacturing facilities or
other significant operations; our ability to improve our
manufacturing efficiency and quality; our dependence on outsourced
service providers for certain key business services and their
ability to execute to our requirements; our ability to maintain or
improve gross margin; our ability to protect our intellectual
property and the unpredictability of any associated litigation
expenses; any expenses or reputational damage associated with
resolving customer product warranty and indemnification claims; our
ability to sell to new types of customers and to keep pace with
technological advances; market acceptance of the end products into
which our products are designed; our overall cash tax costs,
legislation that may impact its overall cash tax costs and its
ability to maintain tax concessions in certain jurisdictions; other
events and trends on a national, regional and global scale,
including those of a political, economic, business, competitive and
regulatory nature.
Our filings with the SEC, which you may obtain for free at the
SEC's website at http://www.sec.gov, discuss some of the important
risk factors that may affect our business, results of operations
and financial condition. Actual results may vary from the estimates
provided. We undertake no intent or obligation to publicly update
or revise any of the estimates and other forward-looking statements
made in this announcement, whether as a result of new information,
future events or otherwise, except as required by law.
Contact:
Broadcom Inc.
Beatrice F. Russotto
Investor Relations
408-433-8000
investor.relations@broadcom.com
1 Source – IBM and other third party sources.
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SOURCE Broadcom Inc.
