Software solutions company CA Technologies (NASDAQ:CA) announced the acquisition of market-leading business Veracode on Monday, leading shares to push upwards throughout the day.
The deal cements the relationship between the two companies, establising CA Technologies as a leader in the Secure DevOps market. The acquisition bridges CA’s Security business with its broad DevOps portfolio and adds to its growing SaaS business.
Founded in 2006, Veracode provides an automated cloud-based service for securing web, mobile and third-party enterprise applications. Upon completion of the transaction, Bob Brennan, former chief executive officer of CA Technologies, will become the general manager of the Veracode business in the company’s product development organization reporting to Ayman Sayed, CA president and chief product officer.
Under the terms of the agreement, the deal is valued at approximately $614 million in cash. CA have said that they will provide further detail regarding the acquisition’s impact to guidance when it reports fourth quarter earnings in May.