CA Technologies acquired the Burlington-based software company, Veracode for $614 million in cash. The acquisition is set to complete by the first quarter of the year 2018.
The New York-based CA Technologies has been highly profitable over the few years earning over $4 billion during the 2016 fiscal year. They expect to increase their revenue by the Veracode acquisition in the coming year by at least 1-3 percent if the deal with Veracode is finalized by April 2018.
Veracode is one of the largest and best Cybersecurity companies and third-party application developers through software lifecycle in Massachusetts. They had around 375 employees as of April 2016. In late 2014 and early 2015, Veracode considered going public, and their Initial Public Offering would have been valued around $600 million – $800 million.
Veracode, established in 2006, makes software that are cloud-based and can be easily tested and monitored by a developer during the different phases of a software cycle. The company has more than 1,400 clients, and some of the most prominent ones are Thomson Reuters and Boeing. They had earned a funding of little over $134 million since their formation in 2006. They have offices in MA, London, and Burlington with over 500 employees in total.
The CEO of Veracode, Bob Brennan issued a statement saying – “We provide over 1,400 small and large enterprise customers the security they need to confidently innovate with the web and mobile applications they build, buy and assemble, as well as the components they integrate into their environments.”
CA Technologies with the acquisition can not only focus on large-scale enterprises, but also mid-size enterprises. Veracode’s array of software and skills should help CA Technologies gain more clients.
The President of CA Technologies, Ayman Sayed said regarding the acquisition, “Software is at the heart of every company’s digital transformation. Therefore, it’s increasingly important for them to integrate security at the start of their development processes so that they can respond to market opportunities in a secure manner.”
He further said, “This acquisition will unify CA’s Security and DevOps portfolios with a SaaS-based platform that seamlessly integrates security into the software development process.”
According to Gartner, by the year 2019, more than half of the companies worldwide will initiate DevOps through security testing. In America, 90% of security incidents occur due to defects in the security of software, according to Homeland Security Dept.
The said acquisition deal is the largest tech deal of this year since Hewlett-Packard (HP) Enterprises stated that they would be acquiring SimpliVity, a data storage company for $650 million.