Acquisition Expands CA’s Opportunity in the
Application Economy
CA Technologies (NASDAQ:CA) today announced it has signed a
definitive agreement to acquire Rally Software Development Corp.
(NYSE:RALY), a leading provider of Agile development software and
services, for $19.50 per share, which equates to approximately $480
million, net of cash acquired. The transaction has been unanimously
approved by both Boards of Directors, and is expected to close in
the second quarter of CA’s fiscal 2016. Based in Boulder, CO, Rally
has approximately 500 employees across four continents and FY 2015
sales of $88 million.
“Software applications are changing the world, disrupting
established business models and bringing in completely new
experiences in areas from travel to banking. In order to compete,
businesses need to develop high quality software quickly and
reliably,” said Mike Gregoire, Chief Executive Officer, CA
Technologies. “Rally is a leading provider of Agile development
software and services, with offerings that complement and expand
CA’s strengths in the areas of DevOps and Management Cloud. Every
developer dreams of creating truly transformative software that
responds to a business challenge extremely quickly. Joining forces
with Rally makes this dream a possibility for millions of
developers worldwide, and in turn opens up the possibility of a
whole new range of experiences driven by software. At the end of
the day, this deal is about enabling speed and flexibility, about
how we can make the most demanding enterprises truly agile.”
With users in more than 135 countries and nearly every industry,
Rally works with some of the world’s largest and most respected
brands, including over 35 of the Fortune 100. These customers
depend on Rally’s award-winning, cloud-based Agile development
platform and the industry’s most experienced transformation
consultants and Agile coaches.
The acquisition of Rally is a significant milestone in CA’s
strategy to help customers thrive in the application economy, in
which software applications are ubiquitous - driving every facet of
business in every part of the world.
Tim Miller, Rally’s Chairman and Chief Executive Officer added,
“In a world driven by software, the powerful combination of Rally
and CA will help our combined customers to better navigate changing
markets, improve performance and deliver value faster - while
accelerating the pace of disruption and developing a competitive
advantage through technology. CA and Rally have more than four
years of history working together, and we are thrilled to be taking
this next step in our relationship to deliver unique value to both
CA and Rally customers.”
Leading industry analysts firms like Forrester1 and IDC say
that the Agile methodology is a major trend in developing
software.
According to Forrester, sixty-nine percent of respondents out of
560 surveyed decision-makers of the annual Forrester Forrsights
Software Survey1 have interest, plan to implement, or have already
implemented Agile for their custom development. Sixty-three percent
of respondents of the same survey answered similarly for packaged
software development and maintenance.
Market intelligence firm IDC expects strong growth for Agile ALM
software. In an analysis2 of the Agile application life-cycle
management market, it reports that worldwide Agile application
life-cycle management software revenue in 2012 reached $211.9
million, and, with a forecasted compound annual growth rate of 39%,
will reach $1.1 billion by 2017.
1Forrester Research, Inc., 2014 Market Overview: Agile
Development Service Providers, December 2014
2 IDC’s Worldwide Agile Application Life-Cycle Management
Software 2014–2017 Forecast and 2012 Vendor Shares: Quick Access
Drives Adoption and Business Agility, May 2014
Additional prepared remarks on the acquisition can be found
at http://ca.com/invest
Qatalyst Partners acted as financial advisor to CA Technologies
and Wilson Sonsini Goodrich & Rosati acted as legal counsel.
Deutsche Bank served as financial advisor to Rally Software
Development Corp. and Cooley LLP served as legal counsel.
About Rally Software Development Corp.
Rally Software Development Corp. (NYSE: RALY) is a leading
global provider of enterprise-class software and services solutions
that drive agility. Companies use Rally's solutions to accelerate
the pace of innovation, improve performance, and respond
effectively to evolving competitive markets and customer needs.
Rally SaaS platform transforms the way organizations manage the
software development lifecycle by aligning software development and
strategic business objectives, facilitating collaboration, and
increasing transparency. Rally consulting and training services
apply Agile and Lean approaches to help organizations innovate,
lead, adapt, and deliver. Learn more at
http://www.rallydev.com.
About CA Technologies
CA Technologies (NASDAQ: CA) creates software that fuels
transformation for companies and enables them to seize the
opportunities of the application economy. Software is at the heart
of every business in every industry. From planning, to development,
to management and security, CA is working with companies worldwide
to change the way we live, transact, and communicate – across
mobile, private and public cloud, distributed and mainframe
environments. Learn more at www.ca.com.
Follow CA Technologies
- Twitter
- Social Media Page
- Press Releases
- Blogs
Legal Notices
Copyright © 2015 CA, Inc. All Rights Reserved. All trademarks,
trade names, service marks, and logos referenced herein belong to
their respective companies.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this communication (such as statements
containing the words "believes," "plans," "anticipates," "expects,"
"estimates," "targets" and similar expressions relating to the
future) constitute "forward-looking statements" that are based upon
the beliefs of, and assumptions made by, CA’s and Rally’s
respective managements, as well as information currently available
to CA’s and Rally’s respective managements. These forward-looking
statements reflect CA’s and Rally’s current views with respect to
future events and are subject to certain risks, uncertainties, and
assumptions. A number of important factors could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including: the ability to consummate
the transaction; the risk that an insufficient number of Rally’s
stockholders tender into the tender offer; the risk that regulatory
approvals required for the acquisition are not obtained or are
obtained subject to conditions that are not anticipated; the risk
that the other conditions to the closing of the acquisition are not
satisfied; potential adverse reactions or changes to customer,
supplier, partner or employee relationships, including those
resulting from the announcement or completion of the acquisition;
uncertainties as to the timing of the acquisition; competitive
responses to the proposed acquisition; response by activist
stockholders to the acquisition; uncertainty of the expected
financial performance of CA following completion of the proposed
transaction; the ability to successfully integrate Rally’s
operations and employees in a timely manner; the ability to realize
anticipated synergies, cost savings and operational efficiencies;
unexpected costs, charges or expenses resulting from the
acquisition; litigation relating to the acquisition; the inability
to retain key personnel; any changes in general economic and/or
industry specific conditions; and other factors described more
fully in CA’s and Rally’s filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
occur, or should CA’s and Rally’s assumptions prove incorrect,
actual results may vary materially from those described herein as
believed, planned, anticipated, expected, estimated, targeted or
similarly expressed in a forward-looking manner. CA and Rally
assume no obligation to update the information in this
communication, except as otherwise required by law. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
Under the terms of the agreement between CA and Rally described
herein, a subsidiary of CA will commence a tender offer to acquire
all of the outstanding shares of Rally for $19.50 per share, net to
seller in cash. CA’s obligation to accept and pay for any Rally
shares tendered pursuant to the foregoing offer will be subject to
customary closing conditions, including receipt of a majority of
the outstanding shares of Rally pursuant to the tender offer
(excluding any shares tendered pursuant to guaranteed delivery
procedures) and expiration of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act.
The tender offer for the outstanding shares of Rally described
herein has not yet commenced. This communication is provided for
informational purposes only and is neither an offer to purchase nor
a solicitation of an offer to sell any securities of Rally pursuant
to the tender offer by CA or otherwise. Any offers to purchase or
solicitations of offers to sell will be made only pursuant to the
Tender Offer Statement on Schedule TO (including the offer to
purchase, the letter of transmittal and other documents relating to
the tender offer) which will be filed with the U.S. Securities and
Exchange Commission (“SEC”) by CA. In addition, Rally will
file with the SEC a Solicitation/Recommendation Statement on
Schedule 14D-9 with respect to the tender offer described herein.
Rally’s stockholders are advised to read these documents, any
amendments to these documents and any other documents relating to
the tender offer that are filed with the SEC carefully and in their
entirety prior to making any decision with respect to CA’s tender
offer because they will contain important information, including
the terms and conditions of the tender offer. Rally’s stockholders
may obtain copies of these documents (when they become available)
for free at the SEC’s website at www.sec.gov.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150527006573/en/
CA Technologies:Jennifer Hallahan, 212-415-6924Corporate
Communicationsjennifer.hallahan@ca.comorMichael Bauer,
212-310-6276Investor Relationsmichael.bauer@ca.comorSaswato Das,
646-710-6690Corporate
Communicationssaswato.das@ca.comorRally:Leslie Marcotte,
720-446-4926Public Relationslmarcotte@rallydev.comorJeff Cooper,
720-446-4914Investor Relationsir@rallydev.com
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Sep 2023 to Sep 2024