CA Bids $614 Million For Veracode

CA Technologies Inc. announced Monday that it has agreed to purchase privately held software company Veracode for $614 million in cash. Veracode, which helps developers test the security of their applications before they are released, was founded in 2006 and has reportedly raised more than $110 million in venture funding with a valuation of roughly $450 million. Fortune reported in 2015 that Veracode had filed confidential documents for an initial public offering, but those documents were never publicly filed with the Securities and Exchange Commission. CA said that the acquisition will add 2 to 3 percentage points to its revenue in the 2018 fiscal year if it closes as expected in the first quarter of that year, though it is expected to have "a modestly adverse impact" on earnings in the 2018 and 2019 fiscal years. CA expects Veracode to add to net income in the 2020 fiscal year. CA stock held steady in late trading after closing with 1.1% gain at $32.82.