CA Technologies has agreed to acquire Veracode, a software security development company for $614m in cash.
Following the acquisition, CA will add Veracode’s application security testing to its security and DevOps business, allowing companies to develop and deploy applications faster with fewer defects.
It plans to do this by automating and scaling up application security testing (AST) for faster deployment of applications.
Veracode provides application security and testing services which are offered as software-as-a-service platform. The services allow developers and users to scan and test security of their applications during the several stages of applications development.
It claims to serve more than 1400 clients which include big names like Boeing and Thomson Reuters.
Veracode has raised more than $100m in venture funding from .406 Ventures, Atlas Venture, Polaris Partners, Symantec, Meritech Capital Partners and Wellington Management.
According to CA Technologies, Veracode can help it gain access to the market of mid-sized enterprises which form the majority of its clientele, while CA’s global reach can help Veracode access larger enterprises customers.
CA Technologies president and chief product officer Ayman Sayed said: “Software is at the heart of every company’s digital transformation. Therefore, it’s increasingly important for them to integrate security at the start of their development processes, so they can respond to market opportunities in a secure manner.
“This acquisition will unify CA’s Security and DevOps portfolios with a SaaS-based platform that seamlessly integrates security into the software development process. Looking holistically at our portfolio, now with Veracode and Automic, we have accelerated the growth profile of our broad set of solutions.
“We now expect that the size of our growing solutions within our Enterprise Solutions portfolio will eclipse the more mature part of the Enterprise Solutions portfolio in FY19.”
CA Technologies estimates that the merger can increase its revenue for 2018 between 1 to 3%. The acquisition could be closed in the first quarter of 2018, subject to regulatory approvals and customary closing conditions.
Before acquiring Veracode, CA Technologies had acquired BlazeMeter, an Israel-based testing company, last year. Previously, it had acquired IdMlogic, an identity management company and Rally Software.