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CA Technologies, Inc., formerly Computer Associates International, Inc., and CA, Inc., was an American multinational enterprise software developer and publisher that existed from 1976 to 2018. CA grew to rank as one of the largest independent software corporations in the world, and at one point was the second largest. The company created systems software (and for a while applications software) that ran in IBM mainframe, distributed computing, virtual machine, and cloud computing environments.

Key Information

The company's primary founder was Charles B. Wang. The main key to Computer Associates' fast growth was the acquisition of many lesser-sized software companies in the IBM mainframe industry segment. CA was known for large-scale dismissals of employees in the acquired firms, and for sometimes extracting cash flow from acquired products rather than enhancing them. Customers of CA often criticized the company for its poor technical support and hostile attitude. CA underwent a major accounting scandal in the early 2000s that led to several past executives being sent to prison. However by the 2010s, several industry organizations ranked CA highly in corporate responsibility and recognition metrics.

Computer Associates had its origins in both Switzerland (Zurich and Geneva) and in the United States (New York City). It was headquartered on Long Island for most of its history, at first Jericho and Garden City in Nassau County, then Suffolk County for two decades in Islandia before moving back to Manhattan in 2014. In 2018, the company was acquired by Broadcom Inc., a semiconductor manufacturer, for nearly $19 billion.

History

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Origins

[edit]

The origins of Computer Associates International lie in a Swiss software products company and a New York data services company.

Samuel W. Goodner was a Texan who was working for the American businessman Sam Wyly's company, University Computing Company (UCC).[1] UCC had acquired the Swiss computer services company Automation Center A.G., founded by the Swiss businessman Walter Haefner, and Wyly despatched Goodner to Europe to watch over it.[2] By 1970, UCC was experiencing financial difficulties, and Goodner, who admired some of Haefner's management practices, decided to leave and start his own firm that would engage in software product development.[2] A company by the name of Computer Associates A.G.[3] was founded in 1970 by Goodner and was located in Zurich, Switzerland.[4]

Meanwhile, under regulatory pressure in 1969, IBM had announced its decision to unbundle the sale of computer hardware from its software and support services,[5][6] i.e., mainframe computers from computer programs, etc. The decision opened new markets to competition and provided an opportunity for entrepreneurs to enter the nascent software industry[7]  — an opportunity that Goodner sought to exploit by developing and selling software products for the IBM mainframe market.[4]

The new firm Computer Associates was underfinanced, but it did have a customer in the Swiss pharmaceutical giant Hoffmann-La Roche and it had developed a sorting program for Hoffmann-La Roche.[4] The new sort had superior efficiency,[8] and, starting in 1971,[9] Computer Associates began selling in Europe the CA-SORT package as a plug-in replacement for the IBM Sort on IBM System/360 and System/370 mainframe platforms.[10][11] The firm sought to sell in countries other than Switzerland, and created a holding company for that purpose; distributors were signed up in different European countries, some of which would then be acquired by Computer Associates.[4] As of 1971, Computer Associates International SA was described as being based in Geneva,[11] and Geneva would be its headquarters through the rest of the 1970s.[9][12] Then in mid-1974,[13] CA-SORT began being distributed and sold in the United States by Pansophic Systems,[9] under the name Pansort.[13] By 1974, the firm was referred to as Computer Associates International Ltd.[9]

In New York City, Standard Data Corporation was a company that was mainly in the service bureau business for electronic data processing.[14] One of the first such companies,[15] it had been in existence since 1959,[16] and was located at 1540 Broadway in Manhattan.[17][18] In 1973, Standard Data began offering the SYMBUG product for sale, which was a symbolic debugger for the COBOL programming language on the IBM mainframe VM/370 platform.[19] In addition, by October 1974, Standard Data was advertising several other products for VM/CMS, including VM/370 ISAM, an emulation of OS ISAM in VM/CMS, as well as SYMBUG for other languages.[18] Eventually Standard Data created a Software Products Division, of which Charles B. Wang was a vice-president.[20] Wang too sought to take advantage of the IBM unbundling decision by developing and marketing software products for the IBM mainframe.[7]

In January 1976, an agreement was signed whereby Pansophic Systems relinquished U.S. rights to CA-SORT and Standard Data Corporation took those exclusive rights over and in the so doing, restored the product name to its European form.[21] Standard Data also gained U.S. rights to a report generator package called EARL (for Easy Access Report Language).[21]

1970s

[edit]

Then in October 1976, a merger was announced between Computer Associates International Ltd and the Software Products Division of Standard Data Corporation, with this merger creating a new entity, Computer Associates, Inc., with Wang as president.[20]

Computer Associates' first offices were at 655 Madison Avenue in Manhattan (here seen in 2023)

The newly created company would continue to market CA-SORT in the United States and in the rest of the Western hemisphere, while the existing European firm would market some of Standard Data's products such as SYMBUG.[20] The new company had an office at 655 Madison Avenue.[22] (The main part of Standard Data Corporation continued on as a company, supplying computer services for several kinds of organizations; the company persisted into the 2010s, but its website does not appear to have been accessible after 2018.[23])

It is thus to 1976 that the creation of what would become the well-known Computer Associates company is usually dated.[8][24][25] This new venture began with four employees.[8] One of them was Russell Artzt, who had met Wang in college, worked with him at Standard Data Corporation, was responsible for programming some of the early software products the new company was offering.[26] Artzt is accordingly considered a co-founder of the well-known Computer Associates.[26][24]

But that would still be awaiting. Soon, the new American venture's name would appear as Trans-American Computer Associates, Inc., in the sense that by September 1977, the company's advertisements were copyrighted to Trans-American Computer Associates, Inc., while CA-SORT 77 was copyrighted to Computer Associates International Ltd.[27] For instance, DYNAM/D was a disk utility for IBM mainframes running DOS and DOS/VS that did disk space management, disk cataloguing, and other such functions;[28] announced in 1977, its trademark belonged to Trans-American Computer Associates, indicating it was developed in America rather than Europe.[28]

CA's Jericho office was a short distance away from this 2010 scene on Jericho Turnpike

In 1979, offices of the American company were moved to Long Island at Jericho, New York,[29] at 125 Jericho Turnpike.[30]

By 1980, the overall Computer Associates International had some 300 employees across its locations around the globe and was selling 12 different products to what it said were 9,000 different customer installation sites.[14] Sales from the United States were the biggest market for the company.[4] In 1980, Wang bought out the Swiss parent company and Computer Associates International, Inc. became his.[14]

1980s

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Old logo of Computer Associates
Old logo of Computer Associates

Computer Associates had an IPO in 1981 that garnered the company a modest $3.2 million.[31] Its stock traded on the NASDAQ using the stock symbol "CASI".

The first significant acquisition in CA's history took place in 1982, when it merged with Capex Corporation, resulting in a 50 percent increase in CA's revenues.[31] Both CA and Capex made software products for the IBM mainframe, but while by CA's own marketing statements CA had visibility and success in software products for IBM's DOS mainframe operating system, potential customers did not think CA was strong in products for the IBM OS mainframe operating system.[32] In contrast, this was an area where Capex had established itself.[33]

The acquisition of Capex was generally viewed as having been successful.[33] It was the start of what was to become a buying spree for Computer Associates over the next several years.[34] The company specialized in going after third-party mainframe software.[35]

CA's main Garden City office was just south of Roosevelt Field, seen here in a satellite view

By 1986, Computer Associates had moved its headquarters again, to Garden City.[36] They would come to be situated in five other buildings within Nassau County as well.[37] Revenue that year was $265 million, with income of more than $30 million. Estimated personal computer software revenue was between $60 to $70 million.[38]

CA's strategy for growth reached a new level with its deal for Uccel in 1987, which valued at $800 million was an order of magnitude larger than any of its previous acquisitions.[31] Uccel was a new name for UCC, which Haefner had gained control of from Wyly in 1976 and which had undergone ups and downs in the years since.[2] Of Uccel's existing staff of 1,200 people, 550 were let go; this kind of harsh post-acquisition reduction measure was typical for the company and became a part of CA's public image.[31] Haefner became Computer Associates' largest individual shareholder, with a stake that comprised about 25 percent of the company.[2]

In 1987, CA's stock began trading on the New York Stock Exchange using the ticker symbol "CA". In 1988, the company purchased the principal software product of Consco.[39]

As the decade ended, CA became the first software company after Microsoft to exceed $1 billion in sales.[40] Information Week listed Computer Associates ahead of Microsoft in a 1990 roundup titled "Software's Heavy Hitters."[41]

1990s

[edit]
CA House in Canberra, Australia, as seen in 2009

Early in the decade, Computer Associates was forced to address criticism of the company as well as a sharp decline in its stock price, which fell more than 50 percent during 1990. The ensuing changes included pushing into foreign markets (Japan, Canada, Africa, Latin America), reforming how the company charged its customers for software maintenance, and improving compatibility with products from other vendors, such as Hewlett-Packard (HP), Apple Computer, and Digital Equipment Corporation (DEC). In addition, the company was not immune to the effects of the early 1990s recession, and by October 1991 the stock was down by around 70 percent from its earlier peak in May 1989.[37] At this point, CA had some 7,000 employees,[37] and around $1.4 billion in sales,[42]

In 1991, CA acquired Pansophic Systems.[43][44]

After 2½ years of planning and construction, the company began moving its headquarters to Islandia, New York in Suffolk County in 1992, consolidating all of the Nassau County operations.[37] There it would occupy a large corporate campus with three office buildings.[45] By this juncture, CA was Long Island's second largest private employer, after Grumman Aerospace, and Suffolk County politicians had given CA substantial tax abatements and assistance with construction financing to lure the company there.[37]

In 1994, CA acquired the ASK Group and continued to offer the Ingres database management system under a variety of brand names.[46]

In 1992, the company was sued by Electronic Data Systems (EDS), a CA customer. EDS accused CA of breach of contract, misuse of copyright and violations of antitrust laws. CA filed a counterclaim, also alleging breach of contract, including copyright infringement and misappropriation of trade secrets.[47] The companies reached a settlement in 1996.[48][7]

In 1995, Legent Corporation was acquired for $1.78 billion, the biggest-ever acquisition in the software industry at that time, and Cheyenne Software for $1.2 billion in 1996. CA executed the software industry's then-largest acquisition ($3.5 billion) via Platinum Technology International in 1999.

In 1998, an unsuccessful and hostile takeover bid by CA for computer consulting firm Computer Sciences Corporation (CSC) prompted a bribery suit by CSC's chairman Van Honeycutt against CA's founder and then CEO, Charles Wang.[49]

By the end of the 1990s, Computer Associates was the dominant company among providers of utility software tools for the mainframe.[50] Personal computer software firms such as Microsoft, Lotus Software, and WordPerfect Corporation were much more recognizable as names to the general public.[31] but while this mainframe industry segment was not widely known, it was a remuneratively rewarding one.[50] A profile in Business Week in 1996 was headlined "Computer Associates: Sexy? No. Profitable? You Bet ",[51] and that accurately conveyed the company's place in the industry.[31]

In May 1998 stock grants were issued to Wang and two others together worth $1.1 billion at the time.[52] In 1999, Wang received the largest bonus in history at that time from a public company. The receipt of a $670 million stock grant that dated to the vesting of a 1995 stock option occurred while the company faced a slowdown in European markets and an economic slump in Asia, both of which had affected CA's earnings and stock price.[53] The stock grants thus became quite controversial.[54] In total, the company took a $675 million after-tax charge for $1.1 billion in payouts to Wang and other top CA executives.[7][55]

Company culture

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Computer Associates received poor marks for customer relations, with a reputation of being more interested in making sales than providing support afterward.[7] To some extent, the CA sales force regarded customers as foes.[56] In 2001, The New York Times wrote that "Computer Associates has infuriated clients with high prices and poor technical support."[50] Fortune wrote, "For all its ubiquity inside the tech departments of corporate America, CA had a horrendous reputation. Where Microsoft has long been the most feared software company, the old CA claimed the title of most despised – not by competitors but by its own customers."[56]

Detractors of CA accused it of putting newly acquired software products into maintenance mode and milking them for cash flow.[56] The products themselves were expensive and central to what corporate IT departments were doing, and so customers found it difficult to move away from CA.[56] As Fortune wrote, "These products made it the barnacle of corporate America: Once you had CA software onboard, it was so onerous and expensive to pull it out that few customers ever did. That led to a lot of steady cash flow – and to arrogance on the part of CA's management."[56] Or as The Register wrote, "CA used acquisitions to grow its portfolio.... Along the way it acquired a reputation as the place decent software goes to die."[35] Nonetheless, as the Times noted in 2001: "To be sure, complaints about Computer Associates' prices and customer support have been around almost as long as the company, and it has always outlasted its detractors."[50]

As some industry analysts observed, the culture of Computer Associates reflected Wang's personality and background, that of an immigrant educated at the non-elite Queens College, City University of New York.[31][56] Wang did not admire or belong to the Silicon Valley mindset and either insulted or avoided its ecosystem of industry analysts and venture capitalists.[51] The company's sales force was composed largely of people with blue-collar backgrounds from New York's outer boroughs and Long Island.[56] With them, CA had a reputation for being, as BusinessWeek wrote, "smart, aggressive, and consistently profitable".[51]

Internally, as the Times wrote, "Over the years, [the company] has gained a reputation as a callous employer that dismisses workers without warning while top executives take home eight- and sometimes nine-figure pay packages."[50] In particular, Computer Associates had a reputation for mass dismissals within companies it had taken over.[57][56][8][44] This was the case with Applied Data Research, for instance, as some 200 employees from its Montgomery Township, New Jersey facility were let go on a single morning in 1988.[57] Similarly, at Cullinet, around 400 employees, comprising a quarter of the company's workforce were told to clear out their desks on a day in 1989.[8] As Sam Wyly, the head of Sterling Software, reflected upon his decision in 2000 to sell that company to Computer Associates: "It wasn't easy for us because of our concern about the CA culture. It wasn't the ideal end place for our products and people. We agonized over that, but our overriding duty was to the shareholders, so we went ahead with the deal."[58]

A contrarian view of Computer Associates was given by computer industry historian Martin Campbell-Kelly, writing around 2001, who gave the company credit for continuing to enhance the DATACOM/DB and IDMS database products it had acquired and for doing the work to have its databases and utility products be able to interoperate.[31] Campbell also saw the act of staffing reductions as "rationalization" of existing businesses that in some cases were not performing well.[31] A hybrid characterization was given in 2002 by Pansophic Systems founder Joseph A. Piscopo, who said that while his company, acquired in 1991, had suffered the typical fate of CA reducing it to just the minimal staff needed to keep maintenance revenue going, in a few cases CA did actually invest in companies it acquired as part of an internal product development strategy, with Cheyenne Software being one such instance.[59]

Accounting scandal

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A letter to shareholders from Wang and Kumar in 2002, maintaining that the company was not in trouble, and a court-approved letter to shareholders in 2003, after CA reached a settlement on charges of securities fraud

By 2000, Computer Associates had acquired on the order of magnitude of 200 companies.[50] In that year, Sanjay Kumar replaced Wang as chief executive officer, with the latter remaining as chairman of Computer Associates' board of directors.[60] Then in 2002, Wang departed completely and Kumar became chairman as well.[61]

In 2000, a shareholder-based class-action lawsuit accused CA of misstating more than $500 million in revenue in its 1998 and 1999 fiscal years in order to artificially inflate its stock price.[62] In 2001, a proxy battle ensued between the board of directors and shareholders led by Wyly, who was unhappy with how CA was being run and especially with how his acquired Sterling Software was being treated.[54] Wyly was not trying to buy the company, but rather trying to get shareholders to elect a new board of directors that would include him as chair.[63] Wyly had hopes of appealing to Haefner, as their business relationship dated back to the 1960s, but Haefner stayed loyal to Wang.[2] In the end, Wyly's two attempts failed; he gave up the struggle in 2002 and received a $10 million payment that was characterized as "greenmail" by some, but not all, industry analysts.[64]

Meanwhile, by early 2002 it was public knowledge that the Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Eastern District of New York had instantiated investigations as to whether CA had engaged in accounting fraud.[65] CA had to cancel a plan to refinance its debt after Moody's Investors Service indicated it might downgrade the company's credit rating, an action that the service soon took.[65] Later in 2002 the U.S. Department of Justice limited CA's acquisitions.[66]

The investigation by the SEC resulted in charges against the company and some of its former top executives.[67] The SEC alleged that from 1998 to 2000, CA routinely kept its books open to include quarterly revenue from contracts executed after the quarter ended in order to meet Wall Street analysts' expectations.[68] As one account from the Wharton School of the University of Pennsylvania wrote, "The SEC said the goal was to meet or beat per-share earnings estimates of Wall Street analysts, a key to keeping a company's stock price rising. ... In all, the company prematurely reported $3.3 billion in revenues from 363 software contracts. ... Moreover, executives at Computer Associates were big shareholders themselves, and many held enormous blocks of stock options. They therefore had a big financial stake in the share price, and thus an incentive to inflate results."[69]

Kumar resigned as CEO and chairman of the company in 2004,[69] staying on as chief software architect, then two months later left the company completely.[70] Following the change in executive leadership, the company restated its earnings for 2000 and 2001 due to the unaccepted revenues policies.[70] Around the same time in 2004, the company avoided indictment for involvement in the 35 day month accounting scandal by reaching a settlement with the SEC and Department of Justice, in which CA agreed to pay $225 million in restitution to shareholders and reform its corporate governance and financial accounting controls.[71][72][73]

Eight CA executives pleaded guilty to fraud or obstruction of justice charges,[56] and several received prison terms.[73] Most notably, in 2006 former CEO and chairman Kumar was sentenced to 12 years in prison and fined $8 million for his role in the massive accounting fraud at Computer Associates.[74][75][76] The company subsequently made sweeping changes through virtually all of its senior leadership positions.[77] Overall the company spent over $500 million on investigations and fines.[78]

2000s

[edit]
Computer Associates building in Plano, Texas, as seen in 2005

By 2001, Computer Associates was the fourth-biggest among independent software companies and had 18,000 employees.[50] Attempts to diversify away from the mainframe business had not met with much success.[50]

CA started the India Technology Centre in Hyderabad on December 10, 2003. In 2004, CA appointed ex-IBM employee John Swainson as CEO.[79] Swainson tried to turn things around, but was hampered by trouble that the company had in fixing its internal finance and accounting systems.[56]

During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT[80] By 2006, the company had 15,000 employees.[56]

The company's original name of Computer Associates International, Inc. was changed to CA, Inc. in January 2006.[81] The company said that the change reflected a changed focus towards helping customers "simplify the management of enterprise-wide IT"; it also came shortly before Kumar pleaded guilty to the array of charges against him.[81]

From May 2008 on, CA was a Nasdaq-100 company.[82]

On September 1, 2009, CA announced CEO John Swainson's decision to retire by the end of the year.[79] On January 28, 2010, CA announced that William E. McCracken would be its chairman of the board and chief executive officer.[83]

2010s

[edit]
A keynote address at the CA World Expo '12 conference in São Paulo, Brazil

In May 2010, at the opening of the CA World 2010 conference in Las Vegas, the company announced it was changing its name again, to CA Technologies.[81] For a reason, the company said the new name "reflects the full breadth and depth of what the company offers."[81]

In 2010, the company acquired eight companies to support its cloud computing strategy: 3Tera,[84] Nimsoft,[85] NetQoS,[86] Oblicore,[87] Cassatt,[88] 4Base Technology,[89] Arcot Systems,[90] and Hyperformix.[91][92] It also acquired Replay Solutions.[93] In 2011, CA acquired ITKO for $330 million.[94] Two years later, it acquired app deployment and management company Nolio for approximately $40 million,[95] as well as Layer7.

CA building (left-center) in Herzliya, Israel, as seen in 2010

The company had been a provider of anti-virus and Internet security commercial software programs for personal computers during its venture into the business-to-consumer market.[96] In 2011, CA sold its antivirus properties to Updata Partners, which spun the division off as Total Defense.[97][98] After the spinoff, CA became primarily known again for its business-to-business mainframe and distributed (client/server, etc.) information technology infrastructure applications.[96]

On January 7, 2013, CA Technologies announced that Michael P. Gregoire would be a member of the board and new chief executive officer.[99][100] In June 2014, CA Technologies moved its headquarters, without an announcement, from Islandia in Suffolk County, to 520 Madison Avenue in New York City.[101]

The final headquarters office for CA was at 520 Madison Avenue in Manhattan (here seen in 2023)

In 2015, the company made four acquisitions, including Rally software for $480 million,[102] Unifyalm, Gridtools,[103] Idmlogic,[104] and Xceedium.[105]

In 2016, CA acquired Blazemeter,[106] Automic,[107] Veracode,[108] and Runscope[109] in 2017.

CA Technologies posted $4.2 billion in revenue for fiscal year 2018 (ending March 31, 2018).[110] Mainframe products and services was still the major of CA's income, comprising about $2.2 billion in the fiscal year, while its so-called enterprise solutions market segment contributed some $1.75 billion and its services business around $0.3 billion.[35] As of 2018, CA Technologies maintained offices in more than 40 countries and employed approximately 11,300 people.[110]

On August 8, 2018, CEO Mike Gregoire was elected as chairman of CA Technologies board of directors, replacing retiring chairman Art Weinbach.[111]

Acquisition by Broadcom

[edit]
Letter to shareholders asking for approval of acquisition by Broadcom

On July 11, 2018, Broadcom Inc. announced it would acquire CA Technologies for $18.9 billion in cash.[112] CA's head, Mike Gregoire, said, "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry."[78] The acquisition puzzled some industry observers, since the two companies' businesses seemed to have little in common.[78][35] One analyst acknowledged that Broadcom could generate cash from the CA operations, but commented: "Financially, it can make sense. But what's the strategic logic?"[78] The Register termed it the "Weirdest. Acquisition. Ever."[35] The transaction was closed on November 5, 2018.[113]

The irony of the reversal of positions did not go unnoticed, with The Register saying "CA Technologies, long a byword for making acquisitions, has been acquired by Broadcom."[35] And Broadcom, like CA, had a reputation for making large reductions in the companies it had just acquired.[114][115] Immediately after the acquisition closed, Broadcom laid off former CA Technologies workers in Silicon Valley[115] and Plano, Texas. It also laid off 262 former CA Technologies employees in Islandia and some in Manhattan.[116] Then, Long Island-based Newsday reported that about 40 percent of all CA employees in the United States would be laid off, adding up to almost 2,000 people being let go.[114] Not long after the Broadcom acquisition, the large Computer Associates campus in Islandia was abandoned.[45]

Corporate responsibility and recognition

[edit]
CEO Michael Gregoire (third from left) listening at the World Economic Forum on Latin America, 2018

During the mid-1990s, Computer Associates realized it had an image problem, both externally and internally, and consequently created a public relations department within the company and also adopted some more employee-friendly human resources policies.[31]

Sustainability

[edit]

In 2010, CA was listed among the greenest companies by Newsweek's Green rankings.[117] CA has been named a component of the Dow Jones Sustainability Indexes (DJSI) for seven years, from 2012 to 2018. In 2015 and 2016, CA was ranked as one of America's Greenest companies by Newsweek.[118][119]

In 2017, the company scored an A− from CDP, the world's most comprehensive rating of companies leading on environmental action, for environmental performance and disclosure.[120]

According to a corporate sustainability report released by the company in 2018, CA reduced its Greenhouse Gas Footprint by more than 35 percent since 2006.[121] It received the Climate Leadership Award in Excellence in GHG Management in 2018,[122] and was included in Barron's 100 Most Sustainable Companies in 2018 as well.[123]

In February 2018, CA was named one of the World's Most Ethical Companies by Ethisphere Institute for the third consecutive year.[124][125]

Equality and diversity

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CA Technologies was named one of the best companies for multicultural women by Working Mother Magazine for four consecutive years, from 2015 to 2018[126][127][128] as well as one of the 100 Best Companies from 2015 to 2017.[129][130] The company was also awarded 4.3 of 5 stars by InHerSight as one of the Top 10 IT Companies for Women in 2017.[131] In 2015 and 2016, Fatherly.com ranked CA as one of the Best Places to Work for New Dads.[132][133]

In 2018, CA was named a National Association for Female Executives top company for executive women.[134] CA was also included in the Bloomberg Gender-Equality Index (GEI) in 2018.[135]

In 2018, for the fourth consecutive year, the Human Rights Campaign Foundation ranked CA as one of the Best Places to Work for LGBTQ+ Equality.[136]

CA CEO Mike Gregoire is a signatory of the CEO Action for Diversity and Inclusion pledge.[137]

Work environments

[edit]
CA European HQ, Berkshire UK, as seen in 2014

For four consecutive years, 2015–2018, CA was named by Computerworld as one of the Best Places to Work in IT.[138][139][140][141] In 2017, it was named to the Forbes list of America's Best Employers[142] and recognized with a STAR Award for Leadership and Innovation by the Technology Services Industry Association (TSIA).[143]

In 2018, CA was named to the Thomson Reuters World's Top 100 Technology companies[144] and for six consecutive years has been the recipient of the NorthFace ScoreBoard Award from Customer Relationship Management Institute (CRMI).[145]

Acquisitions

[edit]
Main article: List of mergers and acquisitions by CA Technologies

CA had a long history of acquisitions in the software industry. It grew its portfolio and became successful through acquiring many companies in disparate fields, including enterprise system monitoring and management, ID management, security, and anti-virus, among others.[35]

See also

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References

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Further reading

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

CA Technologies

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from Grokipedia
CA Technologies, Inc., formerly known as Computer Associates International, Inc., was an American multinational company specializing in IT management solutions that span mainframe, distributed, virtual, and environments. Founded in 1976 by and Russell Artzt in , the company initially focused on mainframe and grew rapidly through aggressive acquisitions, becoming one of the world's largest software firms by the . Throughout its independent history, CA Technologies developed a broad portfolio of products for application development, performance management, security, and , enabling organizations to optimize IT operations and seize opportunities in the application economy. As of 2018 (ending March 31, 2018), it employed about 11,000 people worldwide and generated annual revenue of $4.2 billion, with a strong emphasis on mainframe technologies like CA 1 Tape Management and security tools such as CA Identity Manager. The company rebranded from CA, Inc. to CA Technologies in 2010 to reflect its evolving focus on innovative software that supported across hybrid IT landscapes. In July 2018, Broadcom Inc. announced its acquisition of CA Technologies for $18.9 billion in cash, a deal completed on November 5, 2018, integrating CA's expertise into 's portfolio of solutions. Post-acquisition, CA's offerings continued under , enhancing capabilities in areas like agile planning, , and mainframe security, with the combined entity employing approximately 37,000 people as of 2024. As of 2025, CA's software solutions continue to be offered through 's software division. This merger marked the end of CA as an independent public company, with its listing (CA) ceasing, and solidified its legacy as a pioneer in enterprise IT software.

History

Founding and early growth (1970s–1980s)

CA Technologies, originally founded as Computer Associates International, Inc., in 1976 by and Russell Artzt, began operations in a small office in . The company emerged as a with a Swiss firm of the same name, initially focusing on marketing and distributing software products for computers, capitalizing on IBM's 1969 unbundling of software from hardware sales. , an immigrant from who had worked in sales for and other firms, and Artzt, a , started the venture with limited capital, relying on telephone sales and credit cards to fund initial operations. By 1980, had bought out the Swiss parent's interest, gaining full control and relocating the headquarters to Islandia, . The company's breakthrough came with the development of its flagship product, CA-SORT, a high-speed sorting, merging, and copying utility for mainframes, launched in 1976. This program provided a cost-effective alternative to IBM's own sorting software, enabling faster processing for data-intensive tasks in enterprise environments, and quickly became a revenue cornerstone through recurring maintenance licenses. CA-SORT's success allowed Computer Associates to transition from reselling third-party software to developing solutions, establishing a niche in mainframe utilities during the boom in large-scale . By 1977, the company had expanded its portfolio with additional tools like CA-DYNAM/D for disk management, further solidifying its position in the growing software market for business . In 1981, Computer Associates went public on the exchange under the "CA," raising approximately $3.2 million to fuel expansion. This IPO provided critical capital for product development and international outreach, marking a pivotal step in the company's shift toward aggressive growth. Early acquisitions bolstered this trajectory; notably, in , it acquired Capex Corporation for $22 million in a stock swap, integrating Capex's job scheduling and programmer productivity tools for and DOS/VSE systems, which nearly doubled CA's size and customer base. Through organic sales and these strategic moves, the company achieved rapid scaling, reaching $1 billion in annual revenue by 1989—the first software firm to hit that milestone—primarily through mainframe software dominance. Under 's leadership, Computer Associates cultivated a sales-driven culture emphasizing relentless market expansion and performance-based incentives to motivate employees. Wang fostered an informal, high-pressure environment with minimal bureaucracy, prioritizing direct sales commissions and stock options to reward top performers, which aligned with the company's "eat what you kill" in capturing mainframe software share. This approach, while fueling early hypergrowth, also instilled a focus on volume over refinement, setting the stage for CA's reputation as a scrappy in the industry.

Expansion and challenges (1990s–2000s)

During the 1990s, Computer Associates International (later CA Technologies) experienced significant revenue growth, expanding from approximately $2.1 billion in fiscal year 1994 to $4.7 billion by fiscal year 1998, largely fueled by an aggressive acquisition strategy. A key milestone was the 1995 acquisition of Legent Corporation for $1.78 billion, which bolstered CA's portfolio in data center management software and contributed to a 50% revenue increase in the following years. This period marked a strategic shift toward distributed computing and enterprise software solutions beyond its traditional mainframe focus, as the company recognized the declining dominance of mainframes and sought to capture growth in client-server environments. The acquisition spree continued into the early , including the $3.5 billion purchase of Platinum Technology in 1999, which aimed to enhance CA's enterprise management tools but led to significant integration challenges. Post-acquisition, CA developed a reputation for mass layoffs during mergers, with executives acknowledging workforce reductions to eliminate redundancies, such as the anticipated cuts following the Platinum deal that mirrored earlier restructurings. These moves drew criticisms, as rapid consolidations disrupted support and led to complaints about diminished responsiveness and product reliability during transitions. By 2002, amid broader economic pressures, CA announced further layoffs of around 800 employees worldwide as part of restructuring efforts tied to ongoing acquisition integrations. The era's expansion was overshadowed by a major accounting uncovered in 2000, involving inflated through practices like backdating contracts and keeping books open beyond quarter-end to record deals prematurely. The U.S. Securities and Exchange Commission (SEC) and Department of Justice launched investigations, revealing that from 1998 to 2000, CA had improperly recognized over $3.3 billion in revenue, prompting restatements of $2.2 billion in sales for those years. The culminated in criminal convictions for key executives, including former CEO Sanjay , who pleaded guilty to and obstruction of justice and was sentenced to 12 years in prison in 2006, and former head of worldwide sales Stephen Richards, who received a seven-year sentence in the same year. In the mid-2000s, CA undertook recovery efforts, including leadership transitions to restore credibility; Sanjay Kumar resigned in 2004, followed by the appointment of John Swainson as CEO in 2005 to steer the company toward ethical reforms. The firm implemented governance reforms, such as enhanced internal controls, an independent investigation, and a $225 million settlement with the SEC to improve financial reporting transparency and prevent future irregularities. These measures, combined with a focus on core operations, helped stabilize operations by the late , though the scandal had eroded investor trust and contributed to stock volatility.

Rebranding and acquisition (2010s–present)

In the late 2000s, CA Technologies underwent a significant effort to emphasize its shift toward modern IT management solutions, changing its name from CA, Inc. to CA Technologies in to better reflect its focus on innovation in and agile methodologies. This rebranding was accompanied by the launch of cloud management strategies and agile tools, positioning the company to address the growing demands of dynamic IT environments. In 2014, CA Technologies relocated its global headquarters from Islandia, New York, to New York City's Manhattan borough, a move intended to enhance its appeal to top technology talent in a major urban hub. Although senior executives had operated from Manhattan for several years prior, the formal relocation marked a strategic pivot to align with the company's evolving focus on innovation. CA Technologies' independent operations concluded in 2018 when announced its acquisition of the company for $18.9 billion in an all-cash deal, valuing CA shares at $44.50 each—a 20% premium over the prior closing price. The transaction, approved by both companies' boards, was completed on November 5, 2018, after which CA's stock was delisted from , and it began operating as a wholly owned subsidiary of . Co-founder Charles B. Wang died of on October 21, 2018, at age 74. This acquisition expanded 's portfolio into , complementing its business with CA's established IT management and security offerings. Following the acquisition, CA Technologies was integrated into Broadcom's software segment, where its tools were leveraged to create combined hardware-software solutions for enterprise clients, contributing to overall revenue diversification. By 2025, this integration had supported Broadcom's growth in AI and sectors, with the company's consolidated revenue projected to rise 23% for fiscal year 2025, partly driven by resilient performance in the software business that includes CA's contributions. Meanwhile, maintenance of CA's legacy mainframe products continued under , though customers faced rising licensing costs, including a 6% increase effective February 2025 for mainframe software. As of 2025, CA Technologies operates without a major rebranding under , serving as a key component of the parent's diversification strategy beyond semiconductors and enabling synergies in AI infrastructure through its enterprise capabilities. This structure has bolstered 's market position, with analysts noting strong ongoing performance from the acquired software assets.

Products and services

Mainframe and infrastructure software

CA Technologies developed a suite of core software tools optimized for IBM z/OS mainframe environments, focusing on , storage management, workload orchestration, network oversight, and performance monitoring. These products, now maintained by following the 2018 acquisition, have historically underpinned enterprise data centers by enabling efficient handling of high-volume, mission-critical operations. CA-SORT serves as an advanced sorting utility designed for IBM z/OS mainframes, capable of processing large datasets with high efficiency through optimized algorithms for merging, copying, and reporting. Introduced in 1977, it has become a foundational tool for data manipulation in legacy systems, supporting complex sort operations that reduce processing time in batch environments. Its enduring utility lies in handling terabyte-scale data volumes common in mainframe workloads, where speed and reliability are paramount for applications like processing. CA 1 Tape Management provides comprehensive control over tape libraries in z/OS environments, automating volume tracking, retention policies, and scratch tape allocation to prevent and ensure compliance. This tool integrates with robotic tape systems for seamless operations, managing inventory across virtual and physical libraries while generating audit trails for regulatory adherence. Historically significant since its origins in the as UCC-1, CA 1 has evolved to support modern tape technologies like LTO, maintaining its role in cost-effective archival storage for enterprises with vast needs. CA 7 Workload Automation facilitates job scheduling and dependency management on mainframes, allowing users to define workflows, monitor execution in real-time, and enforce service-level agreements through fault-tolerant processing. It supports cross-platform integration for hybrid environments, using a centralized repository to track job histories and resources. Developed as a key solution in the late 1970s, CA 7 remains essential for orchestrating batch processes in high-stakes operations, such as and billing cycles. CA NetMaster offers capabilities tailored for mainframe connectivity, monitoring SNA and TCP/IP resources to detect anomalies, automate responses, and visualize traffic patterns. It provides proactive diagnostics for devices and connections, enhancing availability in distributed networks linked to systems. With roots in the , this tool has adapted to include IP-based monitoring, supporting secure access for mainframe applications amid increasing hybrid infrastructure demands. CA Sysview delivers performance analytics for legacy systems, offering real-time and historical insights into CPU utilization, I/O activity, and subsystem health via customizable dashboards. It enables rapid issue identification through embedded analytics and alerting, integrating with broader platforms. Originating in the , CA Sysview has sustained its importance by providing granular visibility into mainframe metrics, crucial for optimizing resource allocation in performance-sensitive workloads. In 2025, these tools retain significant relevance for industries like and , where mainframes process over 70% of global transactions due to their reliability and security. Despite the shift toward , 91% of organizations plan to expand mainframe usage, with continuing support through updates while facing rising licensing costs that prompt modernization discussions.

Enterprise IT and cloud management

CA Technologies, now part of Broadcom, provides a range of solutions for enterprise IT and cloud management that enable organizations to orchestrate, monitor, and optimize operations across hybrid and multi-cloud environments. These tools focus on automating workflows, ensuring resource efficiency, and supporting scalable IT operations without deep dives into mainframe-specific utilities. Key offerings include workload automation platforms that integrate with public clouds like AWS and Azure, as well as on-premises systems, to handle complex scheduling and business process management (BPM). CA Workload Automation is a core tool for orchestrating IT workflows in hybrid environments, allowing users to schedule, monitor, and control batch workloads through an intuitive interface that supports drag-and-drop definitions and . It reduces the cost and complexity of managing mission-critical workloads by providing visibility and performance improvements across platforms, including UNIX, Windows, , and systems. Similarly, CA Process Automation, now known as IT Process Automation Manager, enables the design, deployment, and administration of automated operational procedures, supporting IT operations and production environments with and reporting capabilities. These solutions facilitate by integrating disparate systems, improving productivity in enterprise settings. The CA Automic One Platform, an acquired brand integrated into Broadcom's portfolio, serves as a unified solution for and cloud orchestration, extending from mainframes to while simplifying workload management across hybrid clouds. It supports major cloud providers such as AWS and Azure, alongside on-premises infrastructure, to boost visibility and automate complex application landscapes. Complementing these, the Enterprise IT Management (EITM) suite, encompassing tools like DX Performance Management (formerly CA Performance Management), offers performance monitoring for virtual machines and cloud , utilizing analytics to optimize resources and ensure full-stack visibility in traditional, SDN, and cloud networks. In 2025, adoption of these Broadcom CA solutions has surged amid growing hyperscaler demand for scalable IT operations, with private cloud strategies gaining parity to public cloud due to needs for cost predictability, enhanced security, and support for generative AI workloads. Enterprises are increasingly leveraging these tools for greater control over hybrid environments, as evidenced by Broadcom's Private Cloud Outlook 2025 Report, which highlights a shift toward private cloud infrastructure to meet enterprise-scale IT optimization requirements. This trend underscores the role of CA's automation and monitoring capabilities in enabling efficient resource management and operational resilience.

Security and DevOps solutions

CA Technologies, following its acquisition by in 2018, integrated and tools into its portfolio to address vulnerabilities in application development and streamline collaborative workflows. These solutions emphasized embedding practices within pipelines, enabling organizations to detect code flaws early and manage APIs securely in cloud-native environments. A key acquisition was in 2017 for $614 million, which provided (SAST) and (DAST) to identify vulnerabilities in and runtime environments. 's platform automated scanning across the lifecycle and facilitated compliance with standards like and PCI-DSS by prioritizing high-risk flaws for remediation. However, sold to in November 2018 for $950 million. In practices, CA Agile Requirements Designer provides to visualize application flows and generate optimized test cases, shortening development cycles by up to 30% through in-sprint . It integrates with tools such as Jira and Rally Software, ensuring traceability from requirements to deployment and reducing defects by 95% according to independent research. For compliance and , CA Gateway—rebranded as Layer7 Gateway—delivers policy enforcement, , and threat protection for in hybrid clouds. It centralizes at the layer, supporting , JWT validation, and to meet regulatory requirements like GDPR and HIPAA. The gateway simplifies developer workloads by providing scalable integration for enterprise . By 2025, enhanced CA's legacy solutions with AI-driven threat detection, incorporating models into DevSecOps pipelines for proactive anomaly identification and automated response. These updates, part of 's broader portfolio, distilled into reputation scores and detection models, addressing rising enterprise needs for AI-integrated compliance.

Corporate affairs

Leadership and organizational structure

CA Technologies was co-founded in 1976 by Charles B. Wang and Russell Artzt, who established the company to develop and market software for systems. Wang served as CEO from the company's inception until August 2000, during which he oversaw its growth into a major provider through aggressive acquisitions and international expansion. The early 2000s marked a turbulent period for leadership due to an accounting scandal that prompted significant changes. Sanjay Kumar, who succeeded as CEO in 2000, resigned in April 2004 amid federal investigations into improper practices. Kenneth Cron briefly served as interim CEO following Kumar's departure, before John Swainson, a former executive, assumed the CEO role in January 2005, aiming to restore stability and ethical practices. Swainson's tenure, lasting until 2009, emphasized operational improvements and cultural reforms in response to the scandal. In the , leadership transitioned to focus on modernization and market repositioning. Michael McCracken held the CEO position from January 2010 to January 2013, guiding the company through a period of strategic realignment. He was succeeded by Michael Gregoire, who served as CEO from January 2013 until the 2018 acquisition, prioritizing a effort—from CA, Inc. to CA Technologies in 2010—and a pivot toward cloud-based solutions and tools to address evolving enterprise needs. Following Broadcom Inc.'s acquisition of CA Technologies in November 2018 for $18.9 billion, the company ceased to operate independently and was integrated as a software division within Broadcom's infrastructure software group. Hock E. Tan, Broadcom's president and CEO since 2006, now oversees CA's operations, with its leadership reporting directly into Broadcom's executive structure. CA no longer maintains an independent board of directors; instead, it falls under Broadcom's unified governance framework, which includes a 10-member board led by Tan. Governance at CA Technologies evolved significantly after the 2000 scandal, with the establishment of enhanced and compliance committees to prevent future irregularities and rebuild stakeholder trust. These measures included stricter financial reporting protocols and independent audits, as highlighted in post-scandal reforms. By 2025, CA's and compliance practices remain fully aligned with Broadcom's enterprise-wide standards, which prioritize robust , ethical decision-making, and across all divisions.

Global operations and financial overview

CA Technologies maintained a significant global footprint, operating in more than 40 countries with major offices in the (), (Hyderabad and Bangalore), and (), among others. The company supported its international operations with approximately 11,200 employees worldwide prior to its acquisition by in 2018. Financially, CA Technologies achieved peak annual revenue of $4.03 billion in 2017, followed by $4.23 billion in 2018. The company was publicly traded on the under the CA until November 2018, when it was delisted following the acquisition, with a pre-deal of approximately $14 billion. Following the $18.9 billion acquisition, CA Technologies became a wholly owned of Inc., integrating into its infrastructure software segment. This segment, which includes CA's legacy offerings, contributed $21.5 billion to 's total revenue of $51.6 billion in 2024, representing about 42% of the company's overall revenue and emphasizing recurring licensing models for . In 2025, 's infrastructure software revenues continued strong growth, reaching $6.7 billion in the first quarter alone, supporting projections for total company revenue exceeding $60 billion amid a focus on subscription-based services. As of the third quarter of 2025 (ended August 2025), reported total revenue of $15.952 billion, up 22% year-over-year, with infrastructure software playing a key role in the growth. Post-acquisition operational changes included aggressive cost-cutting initiatives, such as layoffs affecting roughly 40% of CA's U.S. workforce—approximately 2,000 employees—in late 2018 and early 2019, aimed at streamlining operations and eliminating redundancies. Additionally, CA's product portfolio was migrated to Broadcom's unified billing and support systems, transitioning customers to subscription licensing to enhance recurring revenue streams and .

Company culture and employee environment

Under the leadership of co-founder from the 1970s through the 1990s, CA Technologies (then Computer Associates) cultivated a highly sales-oriented culture characterized by aggressive revenue targets and intense pressure on employees to meet quotas. This environment fostered a "," where arbitrary firings suppressed dissent, and decision-making was centralized among a small group of executives loyal to Wang, often prioritizing rapid growth through acquisitions and cost-cutting over formal processes. Sales teams operated under a high-stakes model, with late-quarter "hockey stick" deal-making becoming normalized to hit expectations, embedding aggressive tactics into daily operations. The accounting scandal of the early 2000s, involving fraudulent practices like the "35-day month," exposed deep cultural flaws and prompted significant reforms emphasizing and . In response, CA Technologies strengthened its in the mid-2000s, mandating strict compliance with anti-bribery laws, transparent financial reporting, and mechanisms for reporting concerns, such as a dedicated and email. By the , these efforts extended to work-life balance initiatives, including the introduction of flexible hours and a global parent leave policy providing a minimum of 12 weeks of paid leave for new parents, aimed at supporting gender diversity and employee well-being. The THRIVE program, launched as a core pillar of the company's people strategy, further promoted an inclusive and flexible workplace through and top-tier health benefits, contributing to improved scores in annual surveys. Employee experiences reflected ongoing tensions in this evolving environment, with persistent criticisms of high-pressure sales demands that dated back to the Wang era but continued to affect morale. The 2018 acquisition by led to significant disruptions, including the of nearly 2,000 U.S.-based CA employees—about 40% of the domestic workforce—as part of cost-reduction measures. Post-integration, implemented a strict return-to- policy requiring employees within 50 miles of an to work in- five days per week, which has impacted work-life balance for former CA staff. Internal surveys from the mid-2010s showed rising employee satisfaction pre-acquisition, with strengths noted in manager effectiveness and job fulfillment reaching industry-competitive levels by 2015.

Social responsibility and recognitions

Sustainability and environmental efforts

CA Technologies launched its formal sustainability program in 2006, coinciding with its initial reporting to the (CDP), with early efforts emphasizing measurement and reduction strategies, including optimizations for energy efficiency. By 2008, the company had established specific targets for lowering (GHG) emissions through facility upgrades and software-driven efficiencies in . This initiative involved deploying tools like CA ecoSoftware to monitor and manage energy consumption, enabling clients to track carbon impacts from data centers and operational processes. Key achievements in the program's early years included a 30% reduction in the company's overall since 2008, accomplished by 2011 through measures such as improved lighting, facility consolidation, and reduced paper usage. By 2015, these efforts had contributed to broader energy efficiency gains across facilities, aligning with the company's goal of a 35% GHG reduction by relative to 2006 levels. In recognition of these initiatives, CA Technologies ranked 46th in Newsweek's Green Rankings of the top 100 U.S. companies, based on its environmental policies and performance metrics. The company further advanced sustainability via ecoSoftware 2.0, released in , which provided for optimizing energy use and minimizing carbon emissions in and IT environments. Following 's acquisition of CA Technologies in , sustainability efforts aligned with Broadcom's overarching environmental , which includes a commitment to reduce Scope 1 and Scope 2 GHG emissions by 38% by 2030 from a 2021 baseline. CA's software portfolio, including legacy tools rebranded under Broadcom, supports this alignment by enabling optimizations that lower cloud emissions, such as through automated and energy-efficient workload scheduling in hybrid IT setups. For instance, ValueOps solutions, derived from CA technologies, help organizations reduce waste and emissions by streamlining operations and integrating metrics into practices. As of 2025, CA Technologies' contributions are reported within Broadcom's ESG framework, with a growing emphasis on sustainable mainframe operations for enterprise clients. Broadcom's mainframe software, building on CA's expertise, facilitates energy-efficient data processing in environments, reducing overall IT carbon intensity through and compliance-focused optimizations. This integration supports client transitions to greener hybrid infrastructures, as highlighted in Broadcom's ongoing ESG disclosures and tools for monitoring Scope 3 emissions in supply chains.

Diversity, equity, and inclusion initiatives

CA Technologies established several initiatives in the to promote gender diversity in technical roles, including its partnership with to foster a more inclusive technical workforce. As part of this effort, the company launched the "Brilliant Women Powering Brilliant Technology" campaign, aimed at increasing women's representation in engineering and software positions. In 2013, CA Technologies introduced the Diverse Slate Program in the US to broaden candidate pools for hiring, requiring diverse slates that included at least one or minority candidate; by 2014, 70% of hiring slates qualified as diverse, marking a 9% year-over-year in slate diversity. The program also mandated panels to include at least one or minority member to mitigate in selection processes. Complementing these efforts, CA implemented unconscious training for employees starting around 2015, as part of broader strategies to address decision-making biases in recruitment and promotions. Around the same period, CA launched its Global Inclusion Programme, known as Thrive, to enhance awareness and support for underrepresented groups through employee resource networks focused on ethnicity, generational differences, LGBTQ+ issues, and disabilities. These networks facilitated reverse mentoring and career development, contributing to increased representation; for instance, Black, Asian, and Minority Ethnic (BAME) employees in the UK rose to 19% by 2017 from 16% in 2016, while US minority representation reached approximately 25%. In campus recruitment, the initiatives yielded notable results, with nearly 90% of associate software engineer offers going to women in early 2015. Following 's 2018 acquisition of CA Technologies, DEI efforts were integrated into 's overarching framework, including the Diversity@Broadcom initiative and a dedicated DEI established to promote equitable practices across the organization. 's ESG reports emphasize ongoing commitments to diverse hiring and inclusion, with employee networks supporting LGBTQ+ mentorship and broader equity goals, though specific metrics for former CA teams post-integration highlight continued focus on underrepresented groups in technical roles.

Awards and industry accolades

CA Technologies received significant recognition for its ethical practices in when it was named to Ethisphere Institute's list of the World's Most Ethical Companies for the third consecutive year, underscoring the company's commitment to strong and compliance frameworks following earlier corporate challenges in the . This accolade highlighted CA's emphasis on ethical business conduct, transparency, and in the technology sector. In terms of workplace quality, CA Technologies was selected by as one of America's Best Employers in , based on employee surveys evaluating factors such as , benefits, opportunities, and work-life balance. The recognition reflected CA's efforts to foster a positive employee environment amid its operations as a midsize employer with approximately 11,000 staff globally at the time. CA Technologies earned industry honors for its IT solutions, including positioning in Gartner's Magic Quadrant reports for IT Service Management Tools during 2016 and 2017, where it was evaluated for its CA Service Management platform's capabilities in supporting high-maturity IT operations. Following its 2018 acquisition by Broadcom, CA's contributions continued to drive accolades, such as Broadcom's placement as a Leader in the 2024 Gartner Magic Quadrant for Service Orchestration and Automation Platforms, attributing strengths to CA-originated tools like Automic for workload orchestration across hybrid environments. In 2025, Broadcom's upgrade to 'A-' by partly credited the stability and growth in its infrastructure software segment, which incorporates CA Technologies' legacy offerings in enterprise IT management, contributing to 25% segment revenue growth for the .

Acquisitions and integrations

Major acquisitions pre-2018

CA Technologies employed an aggressive acquisition strategy to fuel its expansion in , completing over 60 acquisitions by the early 2000s, which propelled revenue growth from under $1 billion in the late to $4.23 billion by 2018. This approach diversified its portfolio across mainframe, client-server, and but often resulted in integration hurdles, such as product overlaps and slowed in acquired assets. During the and , CA executed numerous acquisitions, including over 60 by the mid-1990s, to solidify its position in mainframe and software, transforming from a niche player into a market leader. A key deal was the 1994 acquisition of ASK Group for $310 million, which introduced robust manufacturing and software tailored for Unix environments. The following year, CA acquired Legent Corporation for $1.78 billion in one of the largest software transactions of the era, enhancing its enterprise and client-server tools. These moves exemplified CA's tactic of snapping up competitors to consolidate , though they sometimes led to redundant product lines requiring extensive rationalization. In the , CA shifted focus toward Windows and environments, with acquisitions averaging several high-profile deals annually. The 1999 purchase of Technology for $3.5 billion marked a pivotal expansion into Windows-based and database tools, nearly doubling CA's footprint in client-server software. By 2005, the $350 million acquisition of Niku Corporation added advanced and IT capabilities, aligning with growing demand for service-oriented architectures. This era's strategy emphasized bolt-on technologies to modernize CA's legacy mainframe strengths, yet integration issues persisted, contributing to operational complexities. The 2010s saw CA targeting cloud, agile, and security innovations to adapt to DevOps trends, with selective but impactful buys. In 2015, CA acquired Rally Software for $480 million, incorporating -based agile planning and development tools to support faster software delivery cycles. The 2017 deal for at $614 million fortified scanning and compliance features, addressing vulnerabilities in web and mobile apps. By 2018, these acquisitions had contributed to significant revenue expansion since the 1980s but highlighted ongoing challenges in harmonizing diverse technologies without stifling growth.

Post-acquisition integration with

Following the completion of 's $18.9 billion acquisition of CA Technologies on November 5, 2018, the company undertook significant restructuring to align operations and reduce redundancies. In late 2018 and early 2019, announced layoffs impacting nearly 2,000 of CA's 4,837 U.S.-based employees, representing a substantial portion of the acquired workforce as part of broader cost-saving initiatives. Additionally, divested non-core assets to focus on strategic priorities, including the sale of CA's application security business to in 2019 for $950 million. CA's product portfolio was subsequently integrated into Broadcom's newly formed Software Group, with many tools rebranded under the banner to streamline offerings and eliminate overlapping functionalities. This integration enhanced synergies with Broadcom's other acquisitions, such as Symantec's enterprise solutions in 2019 and VMware's virtualization platform in 2023, enabling end-to-end IT management capabilities that combined CA's mainframe , cybersecurity, and workload orchestration with broader tools. For instance, CA's legacy mainframe software now supports unified and across hybrid environments incorporating VMware's . The merger diversified Broadcom's revenue streams beyond semiconductors into high-margin , where CA's assets contributed to stable, recurring income from mission-critical IT operations. By 2025, this integration played a role in Broadcom's expanded AI infrastructure initiatives, leveraging CA's tools for efficient of scale-out networking in AI data centers, such as optimizing workload distribution in Ethernet-based AI clusters. These efforts supported Broadcom's partnerships, including its 2025 collaboration with to deploy AI accelerators and networking systems. Despite these advancements, the integration has presented challenges, particularly around mainframe support and customer migrations. Many organizations have initiated migrations away from CA's mainframe products due to evolving cloud-native needs and perceived stagnation in innovation post-acquisition. Licensing costs for CA mainframe software have risen, with announcing a 6% worldwide price increase effective February 3, 2025, amid reports of steeper hikes in renewal negotiations reaching hundreds of percent for some clients. This has led to legal disputes, including a 2025 lawsuit by UnitedHealthcare against alleging over demanded price escalations for CA-integrated mainframe tools. As of late 2025, these issues continue to drive customer reevaluations of long-term dependencies on the combined portfolio.

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