CA Technologies

Solutions of CA Technologies company are aimed at security and managements of the IT environment in activity of IT-organizatsy. CA Technologies enters the rating of 500 largest world companies in many respects thanks to management of the developing IT ecosystems.

History

2018

Reduction of 40% of the state

In November, 2018 it became known of mass layoffs in CA Technologies  four months later after sale of software maker for mainframes of Broadcom company for $18.9 billion.

According to the edition Newsday, Broadcom she intends to reduce nearly 2 thousand jobs of CA Technologies that corresponds to about 41% of the staff of the company. Broadcom confirmed the forthcoming personnel cleaning, but did not begin to call its size. In the company noted that the personnel are crucial for its success, and different options for the best integration of personnel resources are considered.

The software maker for mainframes of CA Technologies reduces 40% of the staff after sale for $19 billion

As well as at any other acquisition, we aim to optimize professional skills and resources for the most effective use of modern market opportunities. It inevitably leads to reductions of the areas selected by the company. These are difficult, but important solutions. We interact with workers whom dismissals will concern to help them with the corresponding services and support, says Broadcom which received the CRN edition.

Newsday writes that by November, 2018 in CA Technologies 4837 people work. After mass layoffs which will take place in the USA there will be 2837 employees or about that. Severance pays will be paid to the left employees. Their size is not specified.

At least one employee of CA Technologies was told what in its last afternoon of work in the company became on November 9, 2018, however officially the contract with it will not be terminated till February 8, 2018.

For Broadcom liquidation of working positions is a customary practice after the company takeover. In June, 2018 the chipmaker removed from staff about 1100 employees after purchase of Brocade in the 2017th. The transaction on acquisition of CA Technologies was closed in November, 2018.^[1]

Broadcom purchased CA Technologies for $18.9 billion

On July 11, 2018 the semiconductor giant Broadcom announced purchase of CA Technologies for $18.9 billion. The transaction is announced four months later after U.S. authorities prohibited to absorb Broadcom of chipmaker Qualcomm for $117 billion.

As notes Reuters, the new purpose of Broadcom for absorption surprised with Wall Street. Investors and analysts tried to understand sense of the transaction and assumed that its purpose is the investment of money rather, but not consolidation of complementary divisions. Against the background of this misunderstanding of the stock Broadcom fell in price for 7% during electronic biddings after closing of the exchange on July 11.

The software maker for mainframes of CA Technologies is sold for $19 billion

Broadcom and CA Technologies work at the different markets therefore the buyer, most likely, will earn from permanent revenues of CA Technologies, than at operational synergy, transfers news agency.

According to analysts of RBC Capital Markets, investors will try to find a consolation in strategic justification of purchase and its influence on capital allocation, Broadcom should offer many explanations.

The chief financial officer of Broadcom Tom Krause, speaking about rationality of purchase of CA Technologies, emphasized that his company already actively works outside the market of chips, for example, offering network equipment for data centers. CA Technologies specializes in the software for mainframes.

We buy the companies having very important technologies. CA is such technology. We are impressed not only by the management of CA, but also a command which CA constructed around assets which we appreciate — Krause said.

Broadcom will pay for purchase of CA Technologies $44.5 counting on each action that is 20% more than a quotation rate of the sold company for a moment closing of the exchange on July 11, 2018. For financing of the transaction Broadcom will attract the loan capital for the amount of $18 billion. By May, 2018 debts of the company were measured by $17.5 billion.

Sale of CA Technologies was approved by the largest shareholders. Now regulators should announce the decisions on the transaction.^[2]

Notes