Shares of CA Technologies soared more than 16 percent in extended trading, after the Wall Street Journal reported that Broadcom was close to acquiring the software company for about $18 billion.
Shares of Broadcom edged down about 4 percent, pushing stock down to about $233.15 per share. Broadcom is down more than 5 percent year-to-date, amid a tumultuous year for the chipmaker’s stock value.
The takeover would mark a strategic win for Broadcom in the months following its failed takeover bid for rival Qualcomm. Acquiring CA Technologies, which manufactures cloud-based and traditional enterprise software, could help diversify Broadcom, according to the Journal.
The reported deal would price shares of New York-based CA Technologies around $44.50 per share, and could be announced late on Wednesday, the Wall Street Journal reported.
Read more about the potential deal from the Wall Street Journal.
