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CA Technologies (CA) Completes the Purchase of Veracode
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CA Technologies (CA - Free Report) recently announced that it has completed the acquisition of a Burlington security software company Veracode, for approximately $614 million in cash. The deal, signed in early March, was subject to customary closing conditions.
Founded in 2006, Veracode offers cloud-based software that helps organisations to run large-scale performance and load tests quickly, easily and inexpensively during the building and deployment process. The company serves more than 1,400 customers, which includes Boeing and Thomson Reuters, and its solutions allow clients to run huge load tests in the cloud.
We feel, the association will strengthen the cloud computing business of CA and make it a complete service provider.
Deal Benefits
The company expects to utilize automation and application security testing (AST) provided by Veracode and expand its DevOps portfolio. Further, the acquisition will broaden CA’s portfolio and enable it to better serve its patrons with a complete solution to address the needs of automation across the enterprise.
Security testing is growing faster and slow testing speed might prove to be a hindrance in getting applications released quickly. Veracode solutions help companies to speeden innovation, improve performance and respond effectively to the evolving competitive market and customer needs. Veracode’s solutions aid companies in managing their software development lifecycle by aligning it with strategic business objectives. Following the acquisition, Veracode will be integrated into CA’s DevOps and Management Cloud business.
This acquisition marks the continuation of CA’s strategy to grow inorganically, striking a balance between making investments for growth and returning cash to shareholders.
Last Words
We are optimistic about CA’s acquisition strategy, which has enhanced its IT management, software and services portfolio. Moreover, we believe that the diversity of its products and the increased efficiency offered by them will attract customers across sectors, lending stability to its business model.
CA has also adopted a “go to market” sales strategy. This brings together all the commercial functions including sales, marketing, brand management, pricing and consumer insight. The integration of the marketing functions helps in lowering costs, thereby improving the bottom line.
Apart from pursuing growth through acquisitions, the company is leveraging cloud computing to enable organizations to source the best components – internal, external, private cloud, public cloud, mobile and more – to construct the most competitive business applications without wasting much time and resource.
The company is also focused on providing advanced management and security software required by organizations to take full advantage of this evolution.
However, CA's shares returned just 4.1% in the last one year compared with the Zacks categorized Computer-Software industry's gain of 21.4%.
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CA Technologies (CA) Completes the Purchase of Veracode
CA Technologies (CA - Free Report) recently announced that it has completed the acquisition of a Burlington security software company Veracode, for approximately $614 million in cash. The deal, signed in early March, was subject to customary closing conditions.
Founded in 2006, Veracode offers cloud-based software that helps organisations to run large-scale performance and load tests quickly, easily and inexpensively during the building and deployment process. The company serves more than 1,400 customers, which includes Boeing and Thomson Reuters, and its solutions allow clients to run huge load tests in the cloud.
We feel, the association will strengthen the cloud computing business of CA and make it a complete service provider.
Deal Benefits
The company expects to utilize automation and application security testing (AST) provided by Veracode and expand its DevOps portfolio. Further, the acquisition will broaden CA’s portfolio and enable it to better serve its patrons with a complete solution to address the needs of automation across the enterprise.
Security testing is growing faster and slow testing speed might prove to be a hindrance in getting applications released quickly. Veracode solutions help companies to speeden innovation, improve performance and respond effectively to the evolving competitive market and customer needs. Veracode’s solutions aid companies in managing their software development lifecycle by aligning it with strategic business objectives. Following the acquisition, Veracode will be integrated into CA’s DevOps and Management Cloud business.
This acquisition marks the continuation of CA’s strategy to grow inorganically, striking a balance between making investments for growth and returning cash to shareholders.
Last Words
We are optimistic about CA’s acquisition strategy, which has enhanced its IT management, software and services portfolio. Moreover, we believe that the diversity of its products and the increased efficiency offered by them will attract customers across sectors, lending stability to its business model.
CA has also adopted a “go to market” sales strategy. This brings together all the commercial functions including sales, marketing, brand management, pricing and consumer insight. The integration of the marketing functions helps in lowering costs, thereby improving the bottom line.
Apart from pursuing growth through acquisitions, the company is leveraging cloud computing to enable organizations to source the best components – internal, external, private cloud, public cloud, mobile and more – to construct the most competitive business applications without wasting much time and resource.
The company is also focused on providing advanced management and security software required by organizations to take full advantage of this evolution.
However, CA's shares returned just 4.1% in the last one year compared with the Zacks categorized Computer-Software industry's gain of 21.4%.
Competition from the likes of Oracle (ORCL - Free Report) , International Business Machines (IBM - Free Report) and HP Inc. (HPQ - Free Report) remain near-term headwinds.
CA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>