Shares of CA Technologies soared more than 16 percent in extended trading, after the Wall Street Journal reported that Broadcom was close to acquiring the software company for about $18 billion.

Shares of Broadcom edged down more than 5 percent, pushing the stock down to about $233.15 per share. Broadcom is down more than 5 percent year-to-date, amid a tumultuous year for the chipmaker’s stock value.

The takeover would mark a strategic win for Broadcom in the months following its failed takeover bid for rival Qualcomm. Acquiring CA Technologies, which manufactures cloud-based and traditional enterprise software, could help diversify Broadcom, according to the Journal.

The reported deal would price shares of New York-based CA Technologies around $44.50 per share, and could be announced late on Wednesday, the Wall Street Journal reported.

Read more about the potential deal from the Wall Street Journal.

Source: Tech CNBC
CA Technologies soars after reportedly nearing deal with Broadcom