CA Technologies (CA) Completes the Purchase of Veracode
CA Technologies CA 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.
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.
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.