Semiconductor vendor Broadcom is set to acquire CA Technologies for $18.9bn (£14.3bn) in a move which it claims will create "one of the world's leading infrastructure technology companies".
Broadcom will pay CA's shareholders $44.50 per share in cash, which it says is 20 per cent more than the closing price of CA stock yesterday when CA's market cap was $15.62bn.
The acquisition comes after Broadcom was close to completing the largest tech acquisition ever, when it eyed up Qualcomm, only for president Trump to scupper the deal.
Broadcom chief executive Hock Tan said: "This transaction represents an important building block as we create one of the world's leading infrastructure technology companies.
"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.
"We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions."
The acquisition has raised eyebrows on Wall Street, with analysts pointing out that there is very little crossover between the two businesses.
NASDAQ-listed Broadcom's share price fell over six per cent in after-hours trading following the deal's announcement.
CA chief executive Mike Gregoire said: "We are excited to have reached this definitive agreement with Broadcom.
"This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry.
"The benefits of this agreement extend to our shareholders who will receive a significant and immediate premium for their shares, as well as our employees who will join an organisation that shares our values of innovation, collaboration and engineering excellence. We look forward to completing the transaction and ensuring a smooth transition."
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