CA Bought By Broadcom For $19 Billion…..Why?

I’m sitting here scratching my head trying to figure out why Broadcom which is a chip maker is buy CA which is a software company that mostly makes software for mainframes for $19 billion even makes sense.

Announcing the deal, Broadcom said the acquisition was part of its strategy to buy “established mission-critical technology businesses”. But that still doesn’t explain why this deal makes sense. Usually when one company buys another company, both companies have things in common. Such as being in the same business or having similar customers. Broadcom and CA are so far from each other, they might as well be on another star system. Unless Broadcom have a need to get into mainframe software, this one make no sense. Perhaps someone far smarter than I can explain it to me.

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