===CA Inc. (CA) to be acquired by Broadcom (AVGO) for $44.50 a share

The Wall Street Journal reported that Broadcom was planning to offer $44.50 a share, or $18 billion, for CA (formerly Computer Associates) in a deal that could be announced as early as today. CA would rank as the first major acquisition attempt by Broadcom since the company was blocked from acquiring Qualcomm (QCOM) earlier in the year.



CA Tech confirms deal to be acquired Broadcom (AVGO) for $44.50/share in cash, or approximately $18.9 bln 

Under the terms of the agreement, which has been approved by the boards of directors of both companies, CA's shareholders will receive $44.50 per share in cash. This represents a premium of approximately 20% to the closing price of CA common stock on July 11, 2018, the last trading day prior to the transaction announcement, and a premium of approximately 23% to CA's volume-weighted average price for the last 30 trading days. The all-cash transaction represents an equity value of approximately $18.9 billion, and an enterprise value of approximately $18.4 billion.

• The transaction is expected to drive Broadcom's long-term Adjusted EBITDA margins above 55% and be immediately accretive to Broadcom's non-GAAP EPS. On a combined basis, Broadcom expects to have last twelve months non-GAAP revenues of approximately $23.9 billion and last twelve months non-GAAP Adjusted EBITDA of approximately $11.6 billion.
• The closing of the transaction is expected to occur in the fourth calendar quarter of 2018.

=CA explores merger with BMC Software

• BMC has been owned by Bain Capital and Golden Gate Capital since 2013, when the buyout firms took the company private in a deal valued at about $6.9 billion.
• CA, led by Chief Executive Officer Michael Gregoire, develops applications for cloud and mobile computing, with most of its revenue coming from maintenance contracts and subscriptions. Founded in 1976 as Computer Associates International, the company went public in 1981.

BMC Software Inc. and CA Inc. are considering a potential deal that would see the software companies combine as part of a transaction to take CA private.

If a deal goes ahead, it would be the biggest leveraged buyout of a technology company since a group led by Michael Dell and Silver Lake Management agreed to buy Dell Inc. in 2013 in a transaction valued at almost $25 billion. CA shares closed at $31.58 on Tuesday, valuing the New York-based company at about $13.2 billion.

Leveraged buyouts -- in which financial sponsors raise a large amount of debt to finance an acquisition -- have become rarer since the 2008 financial crisis led to tighter rules on lending at banks. Private equity firms led 19 purchases worth more than $10 billion from 2005 to 2007

Since the start of 2008, just one such deal other than Dell has been led by a private equity firm: Apollo Global Management LLC’s $12.3 billion acquisition of ADT Corp. in 2016.

=CA Tech (CA) reported 4Q earnings on Tue 26 Jan 2016 (a/h)

CA Tech beats by $0.05, beats on revs; reaffirms FY16 EPS guidance, revs guidance  :

• Reports Q3 (Dec) earnings of $0.63 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $0.58; revenues fell 5.2% year/year to $1.03 bln vs the $1.00 bln Capital IQ Consensus.
• Co reaffirms guidance for FY16, sees EPS of $2.39-2.45, excluding non-recurring items, vs. $2.38 Capital IQ Consensus Estimate; sees FY16 revs of $3.99-4.03 bln vs. $4.00 bln Capital IQ Consensus Estimate. Note, co currently expects total revenue to be at the lower end of this range due primarily to the greater portion of new sales bookings recognized ratably in 1H16, compared to historical trends.
• Non-GAAP operating margin was 38%, same as prior year period.