Broadcoms plan to buy CA Technologies panned as ghost of Intel-McAfee haunts
Summary
Broadcom said it will acquire CA Technologies for $18.9 billion in cash, wring out cost savings and become a software player as well as a semiconductor and storage company.Fast forward to the roll-up that is Broadcom and the CA Technologies purchase is being panned for everything from financial engineering to lack of strategic rationale to cost synergies that are unrealistic.While CA is a departure from Broadcoms core semiconductor business, it is consistent with its track record of acquiring out-of-favor, market leaders with high cost structures.Sure, Broadcom has operations, technology and intellectual property, but it acquires so many companies its hard to figure out whats organic.Evercore ISI analyst CJ Muse noted that Broadcoms purchase of CA doesnt hold up even if you take a private-equity view of the deal.
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