By Maria Armental
CA Inc. is buying Rally Software Development Corp. in a deal
valued at about $480 million, the companies said Wednesday.
The deal is expected to close in the second quarter.
Under the deal, approved by the companies' boards, CA would pay
$19.50 a share, a 44% premium over Wednesday's closing.
Boulder, Colo.-based Rally focuses on agile software development
and related services. It reported $87.5 million in revenue for the
year ended Jan. 31.
Agile development and DevOps break projects into small units,
emphasizing collaboration to build and update mobile applications
faster.
"Every developer dreams of creating truly transformative
software that responds to a business challenge extremely quickly,"
CA Chief Executive Mike Gregoire said in a news release. "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."
Rally's shares, up nearly 19% so far this year, rallied 42% in
late trading to $19.20.
CA's shares, which closed up 1% at $31.18 on Wednesday, were
largely flat in late trading.
Write to Maria Armental at maria.armental@wsj.com
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