After failing to take over Qualcomm, Broadcom has moved on to Software & Services by taking over software provider CA Technologies.
“This transaction represents an important building block as we create one of the world’s leading infrastructure technology companies,” Broadcom CEO and president Hock Tan explains in today’s announcement. “With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses.
When I saw Broadcom (AVGO) down 18% I was hopeful we may have had a hint about whether or not the market was going to woodshed major stocks on earnings this season.
But instead it was this acquisition, which Wall St. has clearly not been able to make sense of in its knee jerk reaction this morning.
A relevant question, however, is why is this Semiconductor company diversifying so far afield within Technology as opposed to firming its grip within its Tech sub-segment, Semiconductors? I don’t have an answer, but there is the whole Semi cyclicality thing.
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