Broadcom made it official, announcing a $18.9 billion deal to buy U.S. business software company CA Inc.
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It is a deal that takes Broadcom beyond semiconductors, adding a company that specializes in software for mainframe computers.
Broadcom will pay $44.50 per share in cash for CA, a 20 percent premium to Wednesday's closing price.
It will finance the deal with cash on hand and $18 billion in new debt financing.
Shareholders have applauded deals made by chief executive Hock Tan, whose deals helped grow its share in the chip market from 4 percent to 30 percent, according to Reuters.
This deal caught Wall Street by surprise and wasn’t met positively.
Investors and analysts were digesting the deal and trying to figure out exactly how the companies would fit together.
Shares in Broadcom fell 7 percent in after-hours trading.
The CA deal, outlined in a joint statement from the companies, comes just four months after U.S. President Donald Trump blocked Broadcom's $117 billion hostile bid for semiconductor peer Qualcomm on national security grounds.
Since then, Broadcom has moved its operations back to the U.S. from Singapore, taking it out from under the eyes of the Committee on Foreign Investment in the United States (CFIUS), the government panel that reviews deals for potential national security risks.