The deal was approved by the boards of both companies.
Broadcom will pay UD 44.50 per share of CA stock; about 20 per cent over the closing price for common shares at the end of formal market trading yesterday, according to the company.
"This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry." The companies expected the acquisition to close in the final quarter of this year. The merger must be approved by shareholders and regulators.
The prior month, President Donald Trump issued an order barring the proposed USD 117 billion hostile takeover of Qualcomm, citing what he called "credible evidence" such a deal "threatens to impair the national security of the United States." It would have been the biggest-ever deal in the tech sector.
Trump's order made no mention of China, but an earlier letter from the US Treasury Department warned that a takeover might hurt US leadership in 5G, super-fast fifth-generation wireless networks now being deployed, and consequently pose a threat to US security.
The presidential action was allowed because Broadcom is a foreign entity, but would not have been possible had it completed its move to Silicon Valley.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)