It’s a little bit of a shock to see chip producer Broadcom purchase a serious software and services firm. “This transaction represents an essential constructing block as we create one of many world’s main infrastructure know-how corporations,” Broadcom CEO and president Hock Tan explains in at this time’s announcement. “With its sizeable put in base of consumers, CA is uniquely positioned throughout the rising and fragmented infrastructure software program market, and its mainframe and enterprise software program franchises will add to our portfolio of mission crucial know-how companies. We intend to proceed to strengthen these franchises to satisfy the rising demand for infrastructure software program options.”
This remark doesn’t precisely clarify the rationale behind at this time’s acquisition, however Broadcom is clearly making an attempt to diversify its choices. Earlier this yr, the corporate walked away from its proposed hostile takeover of Qualcomm after the Trump administration blocked it. On the time, Broadcom was keen to pay $117 billion for Qualcomm, which might have significantly prolonged the corporate’s semiconductor enterprise. Immediately’s transfer sees Broadcom enter a totally new enterprise.
The corporate expects the acquisition to shut within the fourth quarter of 2018. It’s unlikely that Broadcom will face any main headwind from Washington this time round.