CA Technologies has made a $480m (£312m) investment in DevOps with the purchase of Rally Software, a provider of agile development software and services.
Based in Boulder, Colorado, Rally has been working with CA for some four years, and posted revenues of $88m (£57m) during the last fiscal year.
Mike Gregoire, chief executive of CA, said: "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."
Rally’s acquisition by CA will see it moved into private ownership just two years after it made an initial public offering on the New York Stock Exchange that pulled in $84m (£55m) of investment and a valuation at $315m (£205m).
The boards have both companies have already approved the deal, which is expected to close in the second quarter of CA’s fiscal year 2016.
Tim Miller, chief executive at Rally, said: "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."
