Jul. 8, 2015, 11:09 AM
- CA Technologies (CA +0.1%) has closed its $480M ($19.50/share) acquisition of cloud software development tool vendor Rally Software (RALY), a deal first announced on May 27.
- Rally chairman/CEO Tim Miller will become a CA general manager reporting to the company's chief product officer. Rally's organization and leadership will continue reporting to Miller.
- CA will provide guidance that takes the Rally deal into account in its July 23 FQ1 report.
May 27, 2015, 4:57 PM
- CA Technologies is buying Rally Software (NYSE:RALY), a maker of cloud-based software development tools, for $19.50/share, or $480M net of cash on hand. The price represents a 44% premium to Rally's Wednesday close.
- CA, which is looking to cut its dependence on a slow-growing system management software market (pressured by cloud competition), states Rally's Agile Development tools will "complement and expand CA's strengths in the areas of DevOps and Management Cloud." Rally's clients include over 35 Fortune 100 firms.
- The deal is expected to close in calendar Q3 (CA's FQ2). In spite of the premium, CA's purchase price is well below Rally's 2013 post-IPO high of $33.05.
- Rally is at $19.25 in AH trading. CA is unchanged.