CA Technologies#Acquisition by Broadcom
{{Short description|American software company (1976–2018)}}
{{Use mdy dates|date=March 2012}}
{{Infobox company
| name = CA Technologies, Inc.
| logo = CA Technologies logo.svg
| logo_upright = 0.5
| former_name = {{ubl|Computer Associates International, Inc.|CA, Inc.}}
| image = Computer-Associates-HQ.jpg
| image_caption = Headquarters in Islandia, New York (2009)
| type = Public
| traded_as = {{NASDAQ was|CA}}
| founded = {{start date and age|1976}} in New York City, New York, United States
| defunct = {{end date and age|2018}}
| fate = Acquired by Broadcom Inc.
| founders = {{ubl|Charles B. Wang|Russell Artzt}}
| location = Islandia, New York, United States
| industry = Software
| products = Enterprise software
| homepage = {{URL|www.ca.com}}
}}
CA Technologies, Inc., formerly Computer Associates International, Inc., and CA, Inc., was an American multinational enterprise software developer and publisher that existed from 1976 to 2018. CA grew to rank as one of the largest independent software corporations in the world, and at one point was the second largest. The company created systems software (and for a while applications software) that ran in IBM mainframe, distributed computing, virtual machine, and cloud computing environments.
The company's primary founder was Charles Wang. The main key to Computer Associates' fast growth was the acquisition of many lesser-sized software companies in the IBM mainframe industry segment. CA was known for large-scale dismissals of employees in the acquired firms, and for sometimes extracting cash flow from acquired products rather than enhancing them. Customers of CA often criticized the company for its poor technical support and hostile attitude. CA underwent a major accounting scandal in the early 2000s that led to several past executives being sent to prison. However by the 2010s, several industry organizations ranked CA highly in corporate responsibility and recognition metrics.
Computer Associates had its origins in both Switzerland (Zurich and Geneva) and in the United States (New York City). It was headquartered on Long Island for most of its history, at first Jericho and Garden City in Nassau County, then Suffolk County for two decades in Islandia before moving back to Manhattan in 2014. In 2018, the company was acquired by Broadcom Inc., a semiconductor manufacturer, for nearly $19 billion.
History
=Origins=
The origins of Computer Associates International lie in a Swiss software products company and a New York data services company.
Samuel W. Goodner was a Texan who was working for the American businessman Sam Wyly's company, University Computing Company (UCC).{{cite book | url=https://archive.org/details/1000dollarsandid00wyly_0/page/138/mode/2up | title=1,000 Dollars and an Idea: Entrepreneur to Billionaire | author-first=Sam | author-last=Wyly | publisher =Newmarket Press | location=New York | year=2008 | isbn= 9781557048035| pages=139–141}} UCC had acquired the Swiss computer services company Automation Center A.G., founded by the Swiss businessman Walter Haefner, and Wyly despatched Goodner to Europe to watch over it. By 1970, UCC was experiencing financial difficulties, and Goodner, who admired some of Haefner's management practices, decided to leave and start his own firm that would engage in software product development.{{cite news | url=https://www.newspapers.com/article/newsday-suffolk-edition/124299498/ | title=The Great Investor | author-first=James T. | author-last=Madore | newspaper=Newsday | location=Long Island | date=August 12, 2001 | pages=A8, A34,–A35}} A company by the name of Computer Associates A.G.{{cite news | url=https://books.google.com/books?id=vV_yAAAAMAAJ&q=%22computer+associates+ag%22+zurich | title=uncertain | magazine=Data Systems | date=January 1972 | volume=13 | number=1 | page=9}} was founded in 1970 by Goodner and was located in Zurich, Switzerland.{{cite news | url=https://www.newspapers.com/article/newsday-suffolk-edition/124299498/ | title=CA's Roots Trace to Switzerland | author-first=James T. | author-last=Madore | newspaper=Newsday | location=Long Island | date=August 12, 2001 | pages=A8, A35}}
Meanwhile, under regulatory pressure in 1969, IBM had announced its decision to unbundle the sale of computer hardware from its software and support services,{{cite web
|quote=Because they controlled almost 70 percent of the computer market, IBM was ... In January of 1969, the United States Department of Justice filed an antitrust suit
|url=https://cs.stanford.edu/people/eroberts/cs181/projects/corporate-monopolies/government_ibm.html
|title=Regulation of IBM}}{{cite web
|quote=In 1969, IBM unbundled many programs (separating software from hardware). ... ADR sued IBM over flowcharting software - a factor in IBM's decision to unbundle
|title=Software Becomes a Product - CHM Revolution
|url=http://www.computerhistory.org/revolution/mainframe-computers/7/172}} i.e., mainframe computers from computer programs, etc. The decision opened new markets to competition and provided an opportunity for entrepreneurs to enter the nascent software industry — an opportunity that Goodner sought to exploit by developing and selling software products for the IBM mainframe market.
The new firm Computer Associates was underfinanced, but it did have a customer in the Swiss pharmaceutical giant Hoffmann-La Roche and it had developed a sorting program for Hoffmann-La Roche. The new sort had superior efficiency,{{Cite news |date=September 23, 1990 |title=Computers: Selling Software the Hard Way |url=https://www.nytimes.com/1990/09/23/magazine/computers-selling-software-the-hard-way.html |magazine=The New York Times Magazine| pages=50ff|first=Daniel|last=Cohen|quote=The company had enjoyed more than a decade of virtually... Founded as a four-person shop in 1976, Computer Associates ... Cullinane stepped aside when Computer Associates acquired... remarkably efficient Swiss software program, CA-SORT, that had the ability to sort data on I.B.M. mainframes.}} and, starting in 1971, Computer Associates began selling in Europe the CA-SORT package as a plug-in replacement for the IBM Sort on IBM System/360 and System/370 mainframe platforms.{{cite news | url=https://books.google.com/books?id=EkErAQAAMAAJ&q=%22computer+associates%22+%22ca-sort%22 | title=uncertain | volume=5 | issue=uncertain | publisher=International Computer Programs, Inc. | date=1971 | pages=320, 382}}{{cite news | url=https://books.google.com/books?id=hV8kAQAAMAAJ&q=%22computer+associates%22 | title=uncertain | magazine=Software World | publisher=A. P. Publications | volume=3–4 | issue=uncertain | date=1971 | pages=23–24}} The firm sought to sell in countries other than Switzerland, and created a holding company for that purpose; distributors were signed up in different European countries, some of which would then be acquired by Computer Associates. As of 1971, Computer Associates International SA was described as being based in Geneva, and Geneva would be its headquarters through the rest of the 1970s.{{cite news | url=https://books.google.com/books?id=Eb0dAQAAMAAJ&q=%22computer+associates%22+%22geneva%22 | title=uncertain | magazine=Datamation | volume=25 | number=uncertain | date=1979 | page=148}} Then in mid-1974, CA-SORT began being distributed and sold in the United States by Pansophic Systems,{{cite news | url=https://books.google.com/books?id=bYwqAQAAMAAJ&q=%22computer+associates%22+%22CA-sort%22 | title=uncertain | magazine=Software Digest | publisher=EDP News Service | volume=6 | issue=uncertain | date=1974 | pages=4, 11}} under the name Pansort.{{cite news | url=https://books.google.com/books?id=yeSH1uyhLwQC&dq=pansort&pg=PA1 | title=Pansort Saves 370 CPU Time, Disk Space | author-first=Dan | author-last=Leavitt | newspaper=Computerworld | date=August 7, 1974 | pages=1, 3}} By 1974, the firm was referred to as Computer Associates International Ltd.
In New York City, Standard Data Corporation was a company that was mainly in the service bureau business for electronic data processing. One of the first such companies,{{cite book | url=https://books.google.com/books?id=LdgiAQAAMAAJ&q=%22standard+data+corporation%22++%22440+ninth%22 | title=Directory of Pension Funds and Their Investment Managers | publisher=Money Market Directories | year= 1999 | page=2277}} it had been in existence since 1959,{{cite news | url=https://books.google.com/books?id=vOk8vbGQc9QC&dq=%22standard+data%22+%22software+products%22+wang&pg=PA22 |title=Software Market Representatives | newspaper=Computerworld | date=December 24, 1975 | page=22 | type=Classified}} and was located at 1540 Broadway in Manhattan.{{cite news | url=https://books.google.com/books?id=0cxPAAAAYAAJ&q=%22standard+data%22+%221540+broadway%22 | title=uncertain | work=Data Processing and Microfilming Systems | publisher=United Business Locations | volume=8 | number=uncertain | date=1967| page=25}} In 1973, Standard Data began offering the SYMBUG product for sale, which was a symbolic debugger for the COBOL programming language on the IBM mainframe VM/370 platform.{{cite news | url=https://books.google.com/books?id=61PIihUUHl0C&dq=%22standard+data%22+%221540+broadway%22&pg=PA16 | title='Symbug' Package Eases VM/370 Debugging | newspaper=Computerworld | date=September 12, 1973 | page=16}} In addition, by October 1974, Standard Data was advertising several other products for VM/CMS, including VM/370 ISAM, an emulation of OS ISAM in VM/CMS, as well as SYMBUG for other languages.{{cite news | url=https://books.google.com/books?id=c4fhBvRqdZ0C&dq=%22standard+data+corporation%22+symbug&pg=PA20 | title=VM/370 | newspaper=Computerworld | date=October 30, 1974 | page=20 | type=Classified}} Eventually Standard Data created a Software Products Division, of which Charles B. Wang was a vice-president. Wang too sought to take advantage of the IBM unbundling decision by developing and marketing software products for the IBM mainframe.
In January 1976, an agreement was signed whereby Pansophic Systems relinquished U.S. rights to CA-SORT and Standard Data Corporation took those exclusive rights over and in the so doing, restored the product name to its European form.{{cite news | url=https://books.google.com/books?id=Uy7sCK_QJ9QC&dq=%22computer+associates%22+%22CA-sort%22&pg=PT16 | title=Packages Gain Marketer in U.S. | newspaper=Computerworld | date=January 19, 1976 | page=17}} Standard Data also gained U.S. rights to a report generator package called EARL (for Easy Access Report Language).
=1970s=
Then in October 1976, a merger was announced between Computer Associates International Ltd and the Software Products Division of Standard Data Corporation, with this merger creating a new entity, Computer Associates, Inc., with Wang as president.{{cite news | url=https://books.google.com/books?id=zpkGnFNTgAsC&pg=PA44 | title=Software Firm, Distributor Unite | newspaper=Computerworld | date=October 18, 1976 | page=44 }} Image:655 Madison Avenue at corner of East 60th Street.jpgThe newly created company would continue to market CA-SORT in the United States and in the rest of the Western hemisphere, while the existing European firm would market some of Standard Data's products such as SYMBUG. The new company had an office at 655 Madison Avenue.{{cite news | url=https://books.google.com/books?id=V9pNmlI-bZAC&dq=%22computer+associates%22+%22655+madison+avenue%22&pg=PA5 | title=Is CA-SORT the most preferred IBM-compatible package sold today? | newspaper=Computerworld | date=September 13, 1976 | page=5 | type=Advertisement}} (The main part of Standard Data Corporation continued on as a company, supplying computer services for several kinds of organizations; the company persisted into the 2010s, but its website does not appear to have been accessible after 2018.{{cite web | url=http://standarddata.com/about.php | archive-url=https://web.archive.org/web/20180825004057/http://standarddata.com/about.php | title=About Us | publisher=Standard Data Corporation | archive-date=August 25, 2018 | date=2018}})
It is thus to 1976 that the creation of what would become the well-known Computer Associates company is usually dated.{{Cite news |date=November 19, 2002 |title=Wang Quits Computer Associates, CEO Kumar Is Named Chairman |url=https://www.wsj.com/articles/SB1037628757755860428 |newspaper=The Wall Street Journal |quote=Computer Associates' Charles Wang stepped down as chairman and a ... Mr. Wang co-founded Computer Associates in 1976 and built the ... Kumar and Wang, along with Computer Associates co-founder Russell Artzt.}}{{Cite news |last=Bloomberg |first=Jason |title=CA Technologies: Riding The Wave Of Disruption |language=en |work=Forbes |url=https://www.forbes.com/sites/jasonbloomberg/2015/11/20/ca-technologies-riding-the-wave-of-disruption/#47032f8b2a6d |access-date=2018-09-16}} This new venture began with four employees. One of them was Russell Artzt, who had met Wang in college, worked with him at Standard Data Corporation, was responsible for programming some of the early software products the new company was offering.{{cite news | url=https://www.newspapers.com/article/newsday-suffolk-edition/124403627/ | title=Top Dollars at Top of the Ladder | newspaper=Newsday | location=Long Island | date=June 9, 1997 | page=C14 | via=Newspapers.com}} Artzt is accordingly considered a co-founder of the well-known Computer Associates.
But that would still be awaiting. Soon, the new American venture's name would appear as Trans-American Computer Associates, Inc., in the sense that by September 1977, the company's advertisements were copyrighted to Trans-American Computer Associates, Inc., while CA-SORT 77 was copyrighted to Computer Associates International Ltd.{{cite news | url=https://books.google.com/books?id=nAq5oP06EfEC&dq=%22Trans-American+Computer+Associates%22&pg=PA5 | title=Now--CA-SORT 77! | newspaper=Computerworld | date=September 5, 1977 | page=5 | type=Advertisement}} For instance, DYNAM/D was a disk utility for IBM mainframes running DOS and DOS/VS that did disk space management, disk cataloguing, and other such functions;{{cite news | url=
https://books.google.com/books?id=Z0pfld8YlMEC&dq=%22Trans-American+Computer+Associates%22&pg=PA9 | title=DYNAM/D | newspaper=Computerworld | date=March 14, 1977 | page=9 | type=Advertisement}} announced in 1977, its trademark belonged to Trans-American Computer Associates, indicating it was developed in America rather than Europe.
Image:Two Jericho Plaza alongside New York State Route 25 in Jericho.jpg
In 1979, offices of the American company were moved to Long Island at Jericho, New York,{{cite news | url=https://libn.com/2003/04/25/1976-computer-associates-boots-up/ | title=1976: Computer Associates boots up
| first=Adina | last=Genn | date=April 25, 2003 | work=Long Island Business News}} at 125 Jericho Turnpike.{{cite news | url=https://books.google.com/books?id=ZIfKoO-4y_EC&dq=%22computer+associates%22+%22125+jericho%22&pg=RA1-PT1 | title=The Family Tree | newspaper=Computerworld | date=September 17, 1979 | page=112 (Back cover) | type=Advertisement}}
By 1980, the overall Computer Associates International had some 300 employees across its locations around the globe and was selling 12 different products to what it said were 9,000 different customer installation sites.{{cite news |url=https://books.google.com/books?id=vpGNJfMmFswC&dq=%22Computer+Associates%22&pg=PA74 | title=Computer Associates Tells Boom Story | author-first=Connie | author-last=Winkler | newspaper=Computerworld | date=August 18, 1980 | pages=71, 74}} Sales from the United States were the biggest market for the company. In 1980, Wang bought out the Swiss parent company and Computer Associates International, Inc. became his.
=1980s=
{{plain image with caption|Computer Associates logo.svg|align=left|Old logo of Computer Associates}}
Computer Associates had an IPO in 1981 that garnered the company a modest $3.2 million. Its stock traded on the NASDAQ using the stock symbol "CASI".
The first significant acquisition in CA's history took place in 1982, when it merged with Capex Corporation, resulting in a 50 percent increase in CA's revenues. Both CA and Capex made software products for the IBM mainframe, but while by CA's own marketing statements CA had visibility and success in software products for IBM's DOS mainframe operating system, potential customers did not think CA was strong in products for the IBM OS mainframe operating system.{{cite news | url=https://books.google.com/books?id=EBE19ei6KSoC&pg=PA5 | title=We're not big in OS software. | type=Advertisement | newspaper=Computerworld | date=September 6, 1982 | page=5}} In contrast, this was an area where Capex had established itself.
The acquisition of Capex was generally viewed as having been successful.{{cite news | url=https://books.google.com/books?id=1mW5f8lXoEYC&pg=RA1-PA107 | title=CAI's road to growth paved with acquisitions | author-first=Paul | author-last=Gillin | work=Computerworld | date=October 15, 1984 | pages=107, 108}} It was the start of what was to become a buying spree for Computer Associates over the next several years.{{cite news | url=https://books.google.com/books?id=XDjgAMpcE_YC&pg=PP97 | title=Who's Next? | newspaper=Computerworld | date=August 29, 1988 | page=97 | author-first=Clinton | author-last=Wilder}} The company specialized in going after third-party mainframe software.
Image:Roosevelt Field Mall satellite view.png
By 1986, Computer Associates had moved its headquarters again, to Garden City.{{cite news | url=https://www.newspapers.com/clip/123736800/ | title=D.P. Software Pros Career Invitational | newspaper=Newsday | date=October 12, 1986 | page=38 (Classified) | type= | via=Newspapers.com}} They would come to be situated in five other buildings within Nassau County as well. Revenue that year was $265 million, with income of more than $30 million. Estimated personal computer software revenue was between $60 to $70 millon.{{Cite magazine |last=Ryan |first=Alan J. |last2=Pitta |first2=Julie |date=1987-11-02 |title=Challengers: Computer Associates, Claris Corp. |url=https://books.google.com/books?id=mUSIMiurpfYC&pg=PP85#v=onepage&q&f=true |access-date=2025-06-08 |magazine=Computerworld |page=SR19 |volume=XXI |issue=44}}
CA's strategy for growth reached a new level with its deal for Uccel in 1987, which valued at $800 million was an order of magnitude larger than any of its previous acquisitions.{{cite book | title=From Airline Reservations to Sonic the Hedgehog: A History of the Software Industry | url=https://archive.org/details/fromairlinereser00mart_0 | url-access=registration | first=Martin | last=Campbell-Kelly | publisher=MIT Press | location=Cambridge, Massachusetts | year=2003 | isbn= 9780262033039| pages=178–185 }} Uccel was a new name for UCC, which Haefner had gained control of from Wyly in 1976 and which had undergone ups and downs in the years since. Of Uccel's existing staff of 1,200 people, 550 were let go; this kind of harsh post-acquisition reduction measure was typical for the company and became a part of CA's public image. Haefner became Computer Associates' largest individual shareholder, with a stake that comprised about 25 percent of the company.
In 1987, CA's stock began trading on the New York Stock Exchange using the ticker symbol "CA". In 1988, the company purchased the principal software product of Consco.{{Cite news |date=May 26, 1988 |title=Consco sells product line to Computer Associates. (Consco Enterprises Inc., Computer Associates International Inc.) |work=press release |url=http://www.highbeam.com/doc/1G1-6375772.html |access-date=27 December 2009}}{{Dead link|date=June 2019 |bot=InternetArchiveBot |fix-attempted=yes }}
As the decade ended, CA became the first software company after Microsoft to exceed $1 billion in sales.{{Cite news |first=Eric |last=Schmitt |title=Big Employer On L.I. Agrees To Stay There |work=The New York Times |date=February 4, 1989 |language=en |url=https://www.nytimes.com/1989/02/04/nyregion/big-employer-on-li-agrees-to-stay-there.html |access-date=2018-09-16}}
Information Week listed Computer Associates ahead of Microsoft in a 1990 roundup titled "Software's Heavy Hitters."{{cite magazine
|magazine=Information Week |title=Software's Heavy Hitters
|date=April 23, 1990 |pages=45–48 |author=Scott Leibs }}
=1990s=
Image:CA House in Canberra.jpg
Early in the decade, Computer Associates was forced to address criticism of the company as well as a sharp decline in its stock price, which fell more than 50 percent during 1990. The ensuing changes included pushing into foreign markets (Japan, Canada, Africa, Latin America), reforming how the company charged its customers for software maintenance, and improving compatibility with products from other vendors, such as Hewlett-Packard (HP), Apple Computer, and Digital Equipment Corporation (DEC). In addition, the company was not immune to the effects of the early 1990s recession, and by October 1991 the stock was down by around 70 percent from its earlier peak in May 1989. At this point, CA had some 7,000 employees, and around $1.4 billion in sales,{{Cite news |date=1992-04-03 |title=LEGENT TO ACQUIRE OHIO SOFTWARE FIRM |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/archive/business/1992/04/03/legent-to-acquire-ohio-software-firm/718b0c63-3f52-4d5f-8d8d-50e426b02493/ |access-date=2018-09-16 |issn=0190-8286}}
In 1991, CA acquired Pansophic Systems.{{cite court
| litigants =Computer Associates v. Electronic Data Systems
| opinion =No. CV 93-0411
| court =United States District Court, E.D. New York
| date =Mar 26, 1993
| url=https://casetext.com/case/computer-associates-v-electronic-data-systems}}
After 2½ years of planning and construction, the company began moving its headquarters to Islandia, New York in Suffolk County in 1992, consolidating all of the Nassau County operations.{{cite news | url=https://www.newspapers.com/clip/123736558/ | title=Welcome to Reality | author-first=James | author-last=Bernstein | newspaper=Newsday | date=October 14, 1991 | pages=29, 30, 31 (Business) | via=Newspapers.com}} There it would occupy a large corporate campus with three office buildings. By this juncture, CA was Long Island's second largest private employer, after Grumman Aerospace, and Suffolk County politicians had given CA substantial tax abatements and assistance with construction financing to lure the company there.
In 1994, CA acquired the ASK Group and continued to offer the Ingres database management system under a variety of brand names.{{Cite book |url=https://books.google.com/books?isbn=0309062780 |title=Funding a Revolution: Government Support for Computing Research |date=1999 |isbn=0309062780 |quote=Members of the project team rewrote the Ingres prototype repeatedly during these years to incorporate ... (purchased by Computer Associates in 1994) to commercialize the Berkeley code directly.}}
In 1992, the company was sued by Electronic Data Systems (EDS), a CA customer. EDS accused CA of breach of contract, misuse of copyright and violations of antitrust laws. CA filed a counterclaim, also alleging breach of contract, including copyright infringement and misappropriation of trade secrets.{{Cite web |title=CA Technologies, Form 10-K, Annual Report, Filing Date Mar 29, 1994 |url=http://edgar.secdatabase.com/2718/4073094000002/filing-main.htm |access-date=May 14, 2018 |publisher=secdatabase.com}} The companies reached a settlement in 1996.{{Cite web |date=September 22, 2008 |title=CA History |url=http://www.ca.com/us/about/content.aspx?cid=120941 |archive-url=https://web.archive.org/web/20100111023256/http://www.ca.com/us/about/content.aspx?cid=120941 |archive-date=January 11, 2010 |access-date=November 13, 2011 |publisher=Ca.com |df=mdy-all}}{{cite encyclopedia |last1=Lewis |first1=Scott M. | last2=Woodward | first2=A. |editor-last=Pederson |editor-first=Jay P. |encyclopedia=International Directory of Company Histories |title=Computer Associates International, Inc. |url=https://archive.org/details/internationaldir0000unse_b2p7/page/94/mode/2up?view=theater |year=2003 |publisher=St. James Press |volume=49 |location=Farmington Hills, Michigan |isbn=1-55862-475-9 |pages=94–97 }}
In 1995, Legent Corporation was acquired for $1.78 billion, the biggest-ever acquisition in the software industry at that time, and Cheyenne Software for $1.2 billion in 1996. CA executed the software industry's then-largest acquisition ($3.5 billion) via Platinum Technology International in 1999.
In 1998, an unsuccessful and hostile takeover bid by CA for computer consulting firm Computer Sciences Corporation (CSC) prompted a bribery suit by CSC's chairman Van Honeycutt against CA's founder and then CEO, Charles Wang.{{Cite news |title=A pain in the posterior, Forbes, May 18, 1998 |work=Forbes |url=https://www.forbes.com/forbes/1998/0518/6110098a_print.html |archive-url=https://web.archive.org/web/20090415111235/http://www.forbes.com/forbes/1998/0518/6110098a_print.html |archive-date=April 15, 2009 |access-date=November 13, 2011}}
By the end of the 1990s, Computer Associates was the dominant company among providers of utility software tools for the mainframe. Personal computer software firms such as Microsoft, Lotus Software, and WordPerfect Corporation were much more recognizable as names to the general public. but while this mainframe industry segment was not widely known, it was a renumeratively rewarding one. A profile in Business Week in 1996 was headlined "Computer Associates: Sexy? No. Profitable? You Bet ",{{cite news | url=https://www.bloomberg.com/news/articles/1996-11-10/computer-associates-sexy-no-dot-profitable-you-bet#xj4y7vzkg | title=Computer Associates: Sexy? No. Profitable? You Bet | author-first=Amy | author-last=Cortese | magazine=Business Week | date=November 11, 1996}} and that accurately conveyed the company's place in the industry.
In May 1998 stock grants were issued to Wang and two others together worth $1.1 billion at the time.{{Cite news |last=Siwolop |first=Sana |date=1998-07-26 |title=INVESTING IT; Computer Associates' Drop Stuns Managers |language=en-US |work=The New York Times |url=https://www.nytimes.com/1998/07/26/business/investing-it-computer-associates-drop-stuns-managers.html |access-date=2020-09-18 |issn=0362-4331}}
In 1999, Wang received the largest bonus in history at that time from a public company. The receipt of a $670 million stock grant that dated to the vesting of a 1995 stock option occurred while the company faced a slowdown in European markets and an economic slump in Asia, both of which had affected CA's earnings and stock price.{{Cite web |title=Computer Associates Accounting Scandal |url=http://www.corporatenarc.com/cascandal.php |archive-url=https://web.archive.org/web/20110929074250/http://www.corporatenarc.com/cascandal.php |archive-date=September 29, 2011 |access-date=November 13, 2011 |publisher=Corporatenarc.com |df=mdy-all}} The stock grants thus became quite controversial. In total, the company took a $675 million after-tax charge for $1.1 billion in payouts to Wang and other top CA executives.{{Cite web |date=April 19, 1999 |title=Executive Pay: Up, Up and Away, Business Week Online, April 19, 1999 |url=http://www.businessweek.com/1999/99_16/b3625017.htm |archive-url=https://web.archive.org/web/19990508050925/http://www.businessweek.com/1999/99_16/b3625017.htm |archive-date=May 8, 1999 |access-date=November 13, 2011 |website=Bloomberg BusinessWeek}}
=Company culture=
Computer Associates received poor marks for customer relations, with a reputation of being more interested in making sales than providing support afterward. To some extent, the CA sales force regarded customers as foes. In 2001, The New York Times wrote that "Computer Associates has infuriated clients with high prices and poor technical support." Fortune wrote, "For all its ubiquity inside the tech departments of corporate America, CA had a horrendous reputation. Where Microsoft has long been the most feared software company, the old CA claimed the title of most despised – not by competitors but by its own customers."
Detractors of CA accused it of putting newly acquired software products into maintenance mode and milking them for cash flow. The products themselves were expensive and central to what corporate IT departments were doing, and so customers found it difficult to move away from CA. As Fortune wrote, "These products made it the barnacle of corporate America: Once you had CA software onboard, it was so onerous and expensive to pull it out that few customers ever did. That led to a lot of steady cash flow – and to arrogance on the part of CA's management." Or as The Register wrote, "CA used acquisitions to grow its portfolio.... Along the way it acquired a reputation as the place decent software goes to die." Nonetheless, as the Times noted in 2001: "To be sure, complaints about Computer Associates' prices and customer support have been around almost as long as the company, and it has always outlasted its detractors."
As some industry analysts observed, the culture of Computer Associates reflected Wang's personality and background, that of an immigrant educated at the non-elite Queens College, City University of New York. Wang did not admire or belong to the Silicon Valley mindset and either insulted or avoided its ecosystem of industry analysts and venture capitalists. The company's sales force was composed largely of people with blue-collar backgrounds from New York's outer boroughs and Long Island.{{cite news | url=https://money.cnn.com/magazines/fortune/fortune_archive/2006/11/27/8394334/index.htm | title=CA: America's most dysfunctional company | author-first = Nicholas | author-last=Varchaver | agency= Fortune | publisher=CNN Money | date=November 16, 2006}} With them, CA had a reputation for being, as BusinessWeek wrote, "smart, aggressive, and consistently profitable".
Internally, as the Times wrote,
"Over the years, [the company] has gained a reputation as a callous employer that dismisses workers without warning while top executives take home eight- and sometimes nine-figure pay packages."{{cite news | url=https://www.nytimes.com/2001/04/29/business/a-software-company-runs-out-of-tricks-the-past-may-haunt-computer-associates.html | title=A Software Company Runs Out of Tricks; The Past May Haunt Computer Associates | author-first=Alex | author-last=Berenson | newspaper=The New York Times | date= April 29, 2001 }}
In particular, Computer Associates had a reputation for mass dismissals within companies it had taken over. This was the case with Applied Data Research, for instance, as some 200 employees from its Montgomery Township, New Jersey facility were let go on a single morning in 1988.{{cite news | url=https://njbiz.com/the-swift-and-traumatic-firings-at-applied-data-research/ | title=The Swift and Traumatic Firings At Applied Data Research | author-first= Theresa | author-last=Petronico | date=November 21, 1988 | publisher=NJBiz.com }} Similarly, at Cullinet, around 400 employees, comprising a quarter of the company's workforce were told to clear out their desks on a day in 1989. As Sam Wyly, the head of Sterling Software, reflected upon his decision in 2000 to sell that company to Computer Associates: "It wasn't easy for us because of
our concern about the CA culture. It wasn't the ideal end place for our products and people.
We agonized over that, but our overriding duty was to the shareholders, so we went ahead
A contrarian view of Computer Associates was given by computer industry historian Martin Campbell-Kelly, writing around 2001, who gave the company credit for continuing to enhance the DATACOM/DB and IDMS database products it had acquired and for doing the work to have its databases and utility products be able to interoperate. Campbell also saw the act of staffing reductions as "rationalization" of existing businesses that in some cases were not performing well. A hybrid characterization was given in 2002 by Pansophic Systems founder Joseph A. Piscopo, who said that while his company, acquired in 1991, had suffered the typical fate of CA reducing it to just the minimal staff needed to keep maintenance revenue going, in a few cases CA did actually invest in companies it acquired as part of an internal product development strategy, with Cheyenne Software being one such instance.{{cite book | last=Haigh | first=Thomas | date=May 3, 2002 | url=https://conservancy.umn.edu/bitstream/handle/11299/107601/oh342jp.pdf?sequence=1&isAllowed=y | title=An Interview with Joseph Piscopo | publisher=Charles Babbage Institute | archiveurl=https://web.archive.org/web/20210913214844/https://conservancy.umn.edu/bitstream/handle/11299/107601/oh342jp.pdf?sequence=1&isAllowed=y | archivedate=September 13, 2021 | pages=19−21}}
=Accounting scandal=
By 2000, Computer Associates had acquired on the order of magnitude of 200 companies. In that year, Sanjay Kumar replaced Wang as chief executive officer, with the latter remaining as chairman of Computer Associates' board of directors.{{cite news | url=https://www.washingtonpost.com/archive/business/2000/08/08/computer-associates-ceo-resigns/070033ac-2ad8-4e1d-b1b8-527ba6505995/ | title=Computer Associates CEO Resigns | first= Robert Jr. | last= O'Harrow | newspaper=The Washington Post | date=August 8, 2000}} Then in 2002, Wang departed completely and Kumar became chairman as well.{{cite news | url=https://www.networkworld.com/article/892523/lan-wan-ietf-looks-to-streamline-work.html | title=IETF looks to streamline work | work=NetworkWorld | date=November 25, 2002}}
In 2000, a shareholder-based class-action lawsuit accused CA of misstating more than $500 million in revenue in its 1998 and 1999 fiscal years in order to artificially inflate its stock price.{{Cite web |title=CA Technologies, Form 10-K, Annual Report, Filing Date Jun 9, 2000 |url=http://edgar.secdatabase.com/2205/35602800000020/filing-main.htm |access-date=Mar 19, 2013 |publisher=secdatabase.com}} In 2001, a proxy battle ensued between the board of directors and shareholders led by Wyly, who was unhappy with how CA was being run and especially with how his acquired Sterling Software was being treated.{{Cite news |last=Berenson |first=Alex |date=June 21, 2001 |title=Entrepreneur to Begin Proxy Fight for Computer Associates |work=New York Times |url=https://query.nytimes.com/gst/fullpage.html?res=9C05E4DE1630F932A15755C0A9679C8B63&sec=&spon=&pagewanted=all |access-date=November 13, 2011}} Wyly was not trying to buy the company, but rather trying to get shareholders to elect a new board of directors that would include him as chair.{{cite news | last=Berenson | first=Alex | date=June 25, 2001 | url=https://www.nytimes.com/2001/06/25/nyregion/a-new-twist-in-the-proxy-fight-for-control-of-computer-associates.html | title=A New Twist in the Proxy Fight for Control of Computer Associates | newspaper=The New York Times | page=B6 }} Wyly had hopes of appealing to Haefner, as their business relationship dated back to the 1960s, but Haefner stayed loyal to Wang. In the end, Wyly's two attempts failed; he gave up the struggle in 2002 and received a $10 million payment that was characterized as "greenmail" by some, but not all, industry analysts.{{cite news | url=https://www.zdnet.com/article/wyly-drops-computer-associates-proxy-fight/ | title=Wyly drops Computer Associates proxy fight | agency=Reuters | publisher=ZDNet | date=July 23, 2002}}
Meanwhile, by early 2002 it was public knowledge that the Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Eastern District of New York had instantiated investigations as to whether CA had engaged in accounting fraud. CA had to cancel a plan to refinance its debt after Moody's Investors Service indicated it might downgrade the company's credit rating, an action that the service soon took.{{cite news | url=https://www.computerworld.com/article/2587230/moody-s-lowers-ca-s-credit-rating.html | title=Moody's lowers CA's credit rating | first=Marc L. | last=Songini | work=Computerworld | date=March 3, 2002}} Later in 2002 the U.S. Department of Justice limited CA's acquisitions.{{cite news |url=https://www.justice.gov/atr/case-document/competitive-impact-statement-76 |title=Competitive Impact Statement|date=2002-04-23|publisher=United States Department of Justice}}
The investigation by the SEC resulted in charges against the company and some of its former top executives.{{Cite web |title=CA Technologies, Form 10-K, Annual Report, Filing Date May 15, 2002 |url=http://edgar.secdatabase.com/1894/35602802000042/filing-main.htm |access-date=Mar 19, 2013 |publisher=secdatabase.com}} The SEC alleged that from 1998 to 2000, CA routinely kept its books open to include quarterly revenue from contracts executed after the quarter ended in order to meet Wall Street analysts' expectations.{{Cite web |title=SEC files securities fraud charges against Computer Associates, Inc |url=https://www.sec.gov/news/press/2004-134.htm |access-date=November 13, 2011 |publisher=Sec.gov}} As one account from the Wharton School of the University of Pennsylvania wrote, "The SEC said the goal was to meet or beat per-share earnings estimates of Wall Street analysts, a key to keeping a company's stock price rising. ... In all, the company prematurely reported $3.3 billion in revenues from 363 software contracts. ... Moreover, executives at Computer Associates were big shareholders themselves, and many held enormous blocks of stock options. They therefore had a big financial stake in the share price, and thus an incentive to inflate results."{{cite news |url=https://knowledge.wharton.upenn.edu/article/how-serious-was-the-fraud-at-computer-associates/ |title=How Serious Was the Fraud at Computer Associates?|date=October 20, 2004|work=Knowledge at Wharton|publisher=Wharton School of the University of Pennsylvania}}
Kumar resigned as CEO and chairman of the company in 2004, staying on as chief software architect, then two months later left the company completely.{{cite news | url=https://www.nbcnews.com/id/wbna5137947 | title=Sanjay Kumar leaves Computer Associates | agency=Associated Press | publisher=NBC News | date=June 4, 2004}} Following the change in executive leadership, the company restated its earnings for 2000 and 2001 due to the unaccepted revenues policies. Around the same time in 2004, the company avoided indictment for involvement in the 35 day month accounting scandal by reaching a settlement with the SEC and Department of Justice, in which CA agreed to pay $225 million in restitution to shareholders and reform its corporate governance and financial accounting controls.{{Cite web |title=CA Technologies, Form 10-K, Annual Report, Filing Date Jun 29, 2005 |url=http://pdf.secdatabase.com/2760/0000950123-05-007982.pdf |access-date=Mar 19, 2013 |publisher=secdatabase.com}}{{Cite news |last=Berenson |first=Alex |date=April 27, 2004 |title=Computer Associates Restates Timing of $2.2 Billion in Sales |work=The New York Times |url=https://www.nytimes.com/2004/04/27/business/computer-associates-restates-timing-of-2.2-billion-in-sales.html |url-access=subscription}}
Eight CA executives pleaded guilty to fraud or obstruction of justice charges, and several received prison terms.{{Cite news |date=January 17, 2007 |title=2 Years in Prison for Ex-Software Executive |work=The New York Times |url=https://www.nytimes.com/2007/01/17/business/17compute.html |url-access=subscription }} Most notably, in 2006 former CEO and chairman Kumar was sentenced to 12 years in prison and fined $8 million for his role in the massive accounting fraud at Computer Associates.{{Cite web |date=November 3, 2006 |title=Former IT boss jailed for 12 years over '35-day month' scam |url=https://www.independent.co.uk/news/business/news/former-it-boss-jailed-for-12-years-over-35-day-month-scam-422777.html |newspaper=The Independent}}{{Cite news |date=November 6, 2006 |title=Kumar Gets Hard Time |page=15 |work=InformationWeek}}{{Cite news |last=De |first=Michael J. |date=November 3, 2006 |title=Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine, New York Times, November 3, 2006 |work=The New York Times |url=https://www.nytimes.com/2006/11/03/technology/03computer.html |access-date=November 13, 2011}} The company subsequently made sweeping changes through virtually all of its senior leadership positions.{{Cite web |title=CA Technologies, Form 8-K, Current Report, Filing Date Jun 29, 2006 |url=http://edgar.secdatabase.com/1499/95012306008387/filing-main.htm |access-date=Mar 19, 2013 |publisher=secdatabase.com}} Overall the company spent over $500 million on investigations and fines.{{cite news | url=https://www.nytimes.com/2018/07/11/business/broadcom-ca-technologies.html | title=Broadcom Reaches Nearly $19 Billion Deal to Buy CA Technologies | author-first=Steve | author-last= Lohr | author2-first=Michael J. | author2-last=de la Merced | newspaper=The New York Times | date=July 11, 2018}}
=2000s=
By 2001, Computer Associates was the fourth-biggest among independent software companies and had 18,000 employees. Attempts to diversify away from the mainframe business had not met with much success.
CA started the India Technology Centre in Hyderabad on December 10, 2003. In 2004, CA appointed ex-IBM employee John Swainson as CEO.{{Cite web |last=Taft |first=Darryl K. |date=September 2, 2009 |title=CA's CEO Swainson to Retire by End of 2009 |url=http://www.eweek.com/c/a/IT-Management/CAs-CEO-Swainson-to-Retire-by-End-of-2009-130034/ |archive-url=https://archive.today/20120907205430/http://www.eweek.com/c/a/IT-Management/CAs-CEO-Swainson-to-Retire-by-End-of-2009-130034/ |url-status=dead |archive-date=September 7, 2012 |website=eWeek }} Swainson tried to turn things around, but was hampered by trouble that the company had in fixing its internal finance and accounting systems.
During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT{{cite web|url=http://www.internetnews.com/ent-news/article.php/3564046 |title=– 'Believe Again' in CA |publisher=Internetnews.com |date=November 14, 2005 |access-date=November 13, 2011}} By 2006, the company had 15,000 employees.
The company's original name of Computer Associates International, Inc. was changed to CA, Inc. in January 2006. The company said that the change reflected a changed focus towards helping customers "simplify the management of enterprise-wide IT"; it also came shortly before Kumar pleaded guilty to the array of charges against him.
From May 2008 on, CA was a Nasdaq-100 company.{{Cite press release | url=https://www.globenewswire.com/fr/news-release/2008/05/13/378195/142560/en/CA-Inc-to-Join-the-NASDAQ-100-Index-Beginning-May-19-2008.html | title=CA, Inc. to Join the NASDAQ-100 Index Beginning May 19, 2008 | publisher=GlobeNewswire | date=May 12, 2008}}
On September 1, 2009, CA announced CEO John Swainson's decision to retire by the end of the year.
On January 28, 2010, CA announced that William E. McCracken would be its chairman of the board and chief executive officer.{{cite web|url=http://pdf.secdatabase.com/478/0001144204-10-004192.pdf |title=CA Technologies, Form 8-K, Current Report, Filing Date Jan 28, 2010 |publisher=secdatabase.com |access-date =Mar 19, 2013}}
=2010s=
Image:Ca Technologies 2012 keynote session.jpg
In May 2010, at the opening of the CA World 2010 conference in Las Vegas, the company announced it was changing its name again, to CA Technologies.{{cite news | url=https://www.computerworld.com/article/2517586/ca-changes-name-again--now-it-s-now-ca-technologies.html | title=CA changes name again; now it's now CA Technologies | author-first=Joab | author-last=Jackson | agency=IDG News Service | date=May 17, 2010 | magazine=Computerworld}} For a reason, the company said the new name "reflects the full breadth and depth of what the company offers."
In 2010, the company acquired eight companies to support its cloud computing strategy: 3Tera,{{Cite web |title=CA.com |url=http://www.ca.com/us/news/Press-Releases/na/2010/CA-Technologies-Drives-Revolutionary-Approach-to-Cloud-Computing-with-CA-3Tera-AppLogic.aspx |access-date=November 13, 2011 |publisher=CA.com}} Nimsoft,{{Cite web |title=Investor.ca.com |url=http://investor.ca.com/releasedetail.cfm?releaseid=451013 |access-date=November 13, 2011 |publisher=Investor.ca.com}} NetQoS,{{Cite web |date=November 19, 2009 |title=Investor.ca.com |url=http://investor.ca.com/releasedetail.cfm?releaseid=425529 |access-date=November 13, 2011 |publisher=Investor.ca.com}} Oblicore,{{Cite web |title=Arcserve.com |url=http://arcserve.com/us/sitecore/content/home/news/Press-Releases/na/2010/CA-Acquires-Oblicore-Leader-in-IT-Service-Level-Management.aspx |archive-url=https://web.archive.org/web/20110725082714/http://arcserve.com/us/sitecore/content/home/news/Press-Releases/na/2010/CA-Acquires-Oblicore-Leader-in-IT-Service-Level-Management.aspx |archive-date=July 25, 2011 |access-date=November 13, 2011 |publisher=Arcserve.com}} Cassatt,{{Cite web |title=CA.com |url=http://www.ca.com/us/news/press-releases/na/2009/ca-acquires-cassatt-data-center-automation-innovation-and-expertise.aspx |archive-url=https://web.archive.org/web/20111115121438/http://www.ca.com/us/news/press-releases/na/2009/ca-acquires-cassatt-data-center-automation-innovation-and-expertise.aspx |archive-date=November 15, 2011 |access-date=November 13, 2011 |publisher=CA.com}} 4Base Technology,{{Cite web |title=CA.com |url=http://www.ca.com/us/news/press-releases/na/2010/ca-technologies-acquires-virtualization-and-cloud-infrastructure-consulting-firm.aspx |archive-url=https://web.archive.org/web/20111115081303/http://www.ca.com/us/news/Press-Releases/na/2010/CA-Technologies-Acquires-Virtualization-and-Cloud-Infrastructure-Consulting-Firm.aspx |archive-date=November 15, 2011 |access-date=November 13, 2011 |publisher=CA.com}} Arcot Systems,{{Cite web |title=CA.com |url=http://www.ca.com/us/news/Press-Releases/na/2010/CA-Technologies-Completes-Arcot-Systems-Acquisition.aspx |access-date=November 13, 2011 |publisher=CA.com}} and Hyperformix.{{Cite web |title=CA.com |url=http://www.ca.com/us/news/Press-Releases/na/2010/CA-Technologies-to-acquire-Hyperformix.aspx |access-date=November 13, 2011 |publisher=CA.com}}CA Technologies#History It also acquired Replay Solutions.{{Cite web |title=Replay Solutions Stock Price, Funding, Valuation, Revenue & Financial Statements |url=https://www.cbinsights.com/company/replay-solutions/financials |access-date=2023-08-10 |website=www.cbinsights.com}} In 2011, CA acquired ITKO for $330 million.{{Cite news |last=Hickey |first=Andrew R. |title=CA Cloud Spending Spree Continues With $330 Million ITKO Purchase |work=CRN |url=https://www.crn.com/news/cloud/231000824/ca-cloud-spending-spree-continues-with-330-million-itko-purchase.htm |access-date=2018-09-16}} Two years later, it acquired app deployment and management company Nolio for approximately $40 million,{{Cite news |title=Report: CA Technologies To Buy Enterprise App Deployment And Management Company Nolio For Over $40M |language=en-US |work=TechCrunch |url=https://techcrunch.com/2013/03/24/report-ca-technologies-to-buy-enterprise-app-deployment-and-management-company-nolio-for-over-40m/ |access-date=2018-09-16}} as well as Layer7.
The company had been a provider of anti-virus and Internet security commercial software programs for personal computers during its venture into the business-to-consumer market.{{cite web|url=http://www.totaldefense.com/about/mission.aspx |title=Total Defense, About Us |publisher=Total Defense |access-date=May 25, 2012 |archive-url=https://web.archive.org/web/20120518064338/http://totaldefense.com/about/mission.aspx |archive-date=May 18, 2012 }}
In 2011, CA sold its antivirus properties to Updata Partners, which spun the division off as Total Defense.{{cite web|url=http://edgar.secdatabase.com/2225/114420411028598/filing-main.htm |title=CA Technologies, Form 8-K, Current Report, Filing Date May 12, 2011 |publisher=secdatabase.com |access-date =Mar 19, 2013}}{{cite news |url=https://www.theregister.co.uk/2011/05/17/ca_quits_anti_virus_biz/|title=CA antivirus unit sold: Will become 'Total Defense' |work=The Register |date=17 May 2011 |first=John |last=Leyden}} After the spinoff, CA became primarily known again for its business-to-business mainframe and distributed (client/server, etc.) information technology infrastructure applications.
On January 7, 2013, CA Technologies announced that Michael P. Gregoire would be a member of the board and new chief executive officer.{{Cite web |title=CA Technologies, Form 8-K, Current Report, Filing Date Dec 12, 2012 |url=http://pdf.secdatabase.com/297/0000356028-12-000110.pdf |access-date=Mar 19, 2013 |publisher=secdatabase.com}}{{Cite web |title=CA Technologies Names Michael P. Gregoire Chief Executive Officer |url=http://www.ca.com/us/news/Press-Releases/na/2012/CA-Technologies-Names-Michael-P-Gregoire-Chief-Executive-Officer.aspx |access-date=January 9, 2013 |publisher=Ca.com}} In June 2014, CA Technologies moved its headquarters, without an announcement, from Islandia in Suffolk County, to 520 Madison Avenue in New York City.[https://www.newsday.com/business/ca-technologies-quietly-moves-headquarters-to-manhattan-1.8332468 CA Technologies quietly moves headquarters to Manhattan, June 4, 2014]
Image:520 Madison Avenue as seen from 53rd Street.jpg
In 2015, the company made four acquisitions, including Rally software for $480 million,{{Cite news |last=Armental |first=Maria |date=2015-05-27 |title=CA Buys Rally Software Development in $480 Million Deal |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/ca-buys-rally-software-development-in-480-million-deal-1432759558 |access-date=2018-09-16 |issn=0099-9660}} Unifyalm, Gridtools,{{Cite news |title=CA acquires Grid-Tools for agile development |language=en |work=PCWorld |url=https://www.pcworld.com/article/2931992/ca-acquires-gridtools-for-agile-development.html |access-date=2018-09-16}} Idmlogic,{{Cite web |title=CA Technologies buys Israeli co IdMlogic - Globes |url=https://en.globes.co.il/en/article-ca-technologies-buys-israeli-co-idmlogic-1001042862 |access-date=2018-09-16 |website=Globes |date=June 8, 2015 |language=he}} and Xceedium.{{Cite news |date=2015-08-17 |title=CA Technologies acquires Xceedium |language=en |work=Healthcare IT News |url=https://www.healthcareitnews.com/news/ca-technologies-acquires-xceedium |access-date=2018-09-16}}
In 2016, CA acquired Blazemeter,{{Cite news |date=2016-09-22 |title=CA Technologies to Acquire Israeli Startup BlazeMeter for $90 Million |language=en |work=Haaretz |url=https://www.haaretz.com/israel-news/business/ca-technologies-to-acquire-blazemeter-for-90-million-1.5440884 |access-date=2018-09-16}} Automic,{{Cite news |last=Bloomberg |first=Jason |title=CA Technologies Announces Intent To Acquire Enterprise Automation Leader Automic |language=en |work=Forbes |url=https://www.forbes.com/sites/jasonbloomberg/2016/12/01/ca-technologies-announces-intent-to-acquire-enterprise-automation-leader-automic/#484e44226993 |access-date=2018-09-16}} Veracode,{{Cite news |last=Condon |first=Stephanie |title=CA Technologies acquires Veracode |language=en |work=ZDNet |url=https://www.zdnet.com/article/ca-technologies-acquires-veracode/ |access-date=2018-09-16}} and Runscope{{Cite news |date=2017-09-28 |title=CA acquires Runscope to round out API testing and monitoring portfolio - SiliconANGLE |language=en-US |work=SiliconANGLE |url=https://siliconangle.com/2017/09/28/ca-acquires-runscope-round-api-testing-monitoring-portfolio/ |access-date=2018-09-16}} in 2017.
CA Technologies posted $4.2 billion in revenue for fiscal year 2018 (ending March 31, 2018). Mainframe products and services was still the major of CA's income, comprising about $2.2 billion in the fiscal year, while its so-called enterprise solutions market segment contributed some $1.75 billion and its services business around $0.3 billion. As of 2018, CA Technologies maintained offices in more than 40 countries and employed approximately 11,300 people.{{Cite web |title=Investor Story |url=https://investor.ca.com/investor-story |access-date=2018-08-16 |website=CA.com}}
On August 8, 2018, CEO Mike Gregoire was elected as chairman of CA Technologies board of directors, replacing retiring chairman Art Weinbach.{{Cite web |title=CA Technologies elects Mike Gregoire as board chairman CA - The Fly |url=https://thefly.com/landingPageNews.php?id=2774439&headline=CA-CA-Technologies-elects-Mike-Gregoire-as-board-chairman |access-date=2018-09-16 |website=thefly.com |language=en}}
=Acquisition by Broadcom=
Image:Computer Associates acquisition by Broadcom cover letter to shareholders fragment 2018.jpg
On July 11, 2018, Broadcom Inc. announced it would acquire CA Technologies for $18.9 billion in cash.{{Cite press release |title=Broadcom to Acquire CA Technologies for $18.9 Billion in Cash |date=11 July 2018 |publisher=PR Newswire |url=https://www.prnewswire.com/news-releases/broadcom-to-acquire-ca-technologies-for-18-9-billion-in-cash-300679787.html}}
CA's head, Mike Gregoire, said, "This combination aligns our expertise in software with Broadcom's leadership in the semiconductor industry." The acquisition puzzled some industry observers, since the two companies' businesses seemed to have little in common. One analyst acknowledged that Broadcom could generate cash from the CA operations, but commented: "Financially, it can make sense. But what's the strategic logic?" The Register termed it the "Weirdest. Acquisition. Ever." The transaction was closed on November 5, 2018.{{Cite press release |title=Broadcom Inc. Completes Acquisition of CA Technologies |date=November 5, 2018 |publisher=PR Newswire |url=https://www.prnewswire.com/news-releases/broadcom-inc-completes-acquisition-of-ca-technologies-300743810.html}}
The irony of the reversal of positions did not go unnoticed, with The Register saying "CA Technologies, long a byword for making acquisitions, has been acquired by Broadcom." And Broadcom, like CA, had a reputation for making large reductions in the companies it had just acquired.{{cite news | url=https://www.bizjournals.com/sanjose/news/2018/11/19/broadcom-ca-technologies-layoffs-avgo.html | title=Broadcom to lay off local employees following $18B purchase of CA Technologies | author-first=Jennifer | author-last=Elias | newspaper=Silicon Valley Business Journal | date=November 19, 2018 |publisher=American City Business Journals}} Immediately after the acquisition closed, Broadcom laid off former CA Technologies workers in Silicon Valley and Plano, Texas. It also laid off 262 former CA Technologies employees in Islandia and some in Manhattan.{{Cite web |first=Ken |last=Schachter |date=November 16, 2018 |title=Broadcom to lay off 262 former CA Technologies workers in Islandia: Filing |url=https://www.newsday.com/business/technology/broadcom-to-lay-off-262-former-ca-technologies-workers-in-islandia-filing-1.23455235 |access-date=November 29, 2018 |publisher=Newsday}}{{deadlink|date=March 2025}} Then, Long Island-based Newsday reported that about 40 percent of all CA employees in the United States would be laid off, adding up to almost 2,000 people being let go.{{cite news | url=https://www.crn.com/news/channel-programs/broadcom-preps-for-massive-ca-technologies-layoffs-report | title=Broadcom Preps For Massive CA Technologies Layoffs: Report | author-first=Joseph F. | author-last=Kovar | publisher=CRN News | date=November 9, 2018}} Not long after the Broadcom acquisition, the large Computer Associates campus in Islandia was abandoned.{{cite news | url=https://rew-online.com/jv-to-reactivate-76-acre-former-ca-campus/ | title=JV to reactivate 76-acre former CA campus | work=Real Estate Weekly | date=November 24, 2021}}
Corporate responsibility and recognition
Image:World Economic Forum on Latin America 14 a 15 03 2018 (39036175260).jpg
During the mid-1990s, Computer Associates realized it had an image problem, both externally and internally, and consequently created a public relations department within the company and also adopted some more employee-friendly human resources policies.
= Sustainability =
In 2010, CA was listed among the greenest companies by Newsweek's Green rankings.{{Cite web |title=Green Rankings 2010: U.S. Companies - Newsweek |url=https://www.newsweek.com/2010/10/18/green-rankings-us-companies.html |access-date=2018-09-16 |website=www.newsweek.com}} CA has been named a component of the Dow Jones Sustainability Indexes (DJSI) for seven years, from 2012 to 2018. In 2015 and 2016, CA was ranked as one of America's Greenest companies by Newsweek.{{Cite news |date=2015-06-04 |title=Full U.S. Rankings |language=en |work=Newsweek |url=https://www.newsweek.com/green-2015/top-green-companies-u.s.-2015 |access-date=2018-09-16}}{{Cite news |date=2017-12-14 |title=Full U.S. Rankings |language=en |work=Newsweek |url=https://www.newsweek.com/green-2016/top-green-companies-us-2016 |access-date=2018-09-16}}
In 2017, the company scored an A− from CDP, the world's most comprehensive rating of companies leading on environmental action, for environmental performance and disclosure.{{Cite web |title=Scores 2017 - CDP |url=https://www.cdp.net/en/scores-2017#ce18792fcd0fe57536a0355d66e874d4 |access-date=2018-09-16 |website=www.cdp.net |language=en}}
According to a corporate sustainability report released by the company in 2018, CA reduced its Greenhouse Gas Footprint by more than 35 percent since 2006.{{Cite web |title=Sustainability at CA Technologies - CA Technologies |url=https://www.ca.com/us/company/sustainability-report/downloads.html |access-date=2018-09-16 |website=www.ca.com}} It received the Climate Leadership Award in Excellence in GHG Management in 2018,{{Cite news |title=Eighteen U.S. Businesses and Cities Honored at the Climate Leadership Awards {{!}} Bloomberg Philanthropies |language=en-US |work=Bloomberg Philanthropies |url=https://www.bloomberg.org/press/releases/eighteen-u-s-businesses-cities-honored-climate-leadership-awards/ |access-date=2018-09-16}} and was included in Barron's 100 Most Sustainable Companies in 2018 as well.{{Cite news |last=Norton |first=Leslie P. |title=Barron's 100 Most Sustainable Companies |language=en-US |url=https://www.barrons.com/articles/barrons-100-most-sustainable-companies-1517605530 |access-date=2018-09-16}}
In February 2018, CA was named one of the World's Most Ethical Companies by Ethisphere Institute for the third consecutive year.{{Cite news |date=2018-02-13 |title=CA Technologies Named One of the 2018 World's Most Ethical Companies |work=APMdigest - Application Performance Management |url=http://www.apmdigest.com/ca-technologies-named-one-of-the-2018-worlds-most-ethical-companies |access-date=2018-09-16}}{{Cite web |title=Companies – Ethisphere Institute {{!}} Good. Smart. Business. Profit. |url=http://www.worldsmostethicalcompanies.com/honorees/ |access-date=2018-09-16 |website=www.worldsmostethicalcompanies.com |language=en-US}}
= Equality and diversity =
CA Technologies was named one of the best companies for multicultural women by Working Mother Magazine for four consecutive years, from 2015 to 2018{{Cite web |title=Best Places to Work 2016 |url=http://www.hrc.org/resources/best-places-to-work-2016 |access-date=2018-09-16 |website=Human Rights Campaign |language=en |archive-date=September 9, 2018 |archive-url=https://web.archive.org/web/20180909124004/http://www.hrc.org/resources/best-places-to-work-2016 |url-status=dead }}{{Cite news |title=Meet the 2018 Best Companies for Multicultural Women |language=en |work=Working Mother |url=https://www.workingmother.com/best-companies-for-multicultural-women-winners-2018 |access-date=2018-09-16}}{{Cite news |title=CA Technologies |language=en |work=Working Mother |url=https://www.workingmother.com/best-companies-ca-technologies |access-date=2018-09-16}} as well as one of the 100 Best Companies from 2015 to 2017.{{Cite news |title=2015 Working Mother 100 Best Companies |language=en |work=Working Mother |url=https://www.workingmother.com/2015-working-mother-100-best-companies-hub |access-date=2018-09-16}}{{Cite news |title=CA Technologies |language=en |work=Working Mother |url=https://www.workingmother.com/best-companies-ca-technologies?9HiZXAFRhD2GyJJS_03 |access-date=2018-09-16}} The company was also awarded 4.3 of 5 stars by InHerSight as one of the Top 10 IT Companies for Women in 2017.{{Cite news |title=InHerSight.com's Top 10 IT Companies for Women to Work For in 2017 |language=en-US |work=eWEEK |url=http://www.eweek.com/it-management/inhersight.com-s-top-10-it-companies-for-women-to-work-for-in-2017 |access-date=2018-09-16}} In 2015 and 2016, Fatherly.com ranked CA as one of the Best Places to Work for New Dads.{{Cite news |date=2015-04-28 |title=Here's Why CA Technologies Made Our 50 Best Places To Work For New Dads |language=en-US |work=Fatherly |url=https://www.fatherly.com/love-money/18-ca-technologies-50-best-places-to-work-for-new-dads/ |access-date=2018-09-16 |archive-date=September 16, 2018 |archive-url=https://web.archive.org/web/20180916163952/https://www.fatherly.com/love-money/18-ca-technologies-50-best-places-to-work-for-new-dads/ |url-status=dead }}{{Cite news |date=2016-05-09 |title=23. CA Tech: The Best Places To Work For New Dads In 2016 |language=en-US |work=Fatherly |url=https://www.fatherly.com/love-money/work-money/ca-tech-50-best-places-work-new-dads-in-2016/ |access-date=2018-09-16 |archive-date=September 16, 2018 |archive-url=https://web.archive.org/web/20180916130519/https://www.fatherly.com/love-money/work-money/ca-tech-50-best-places-work-new-dads-in-2016/ |url-status=dead }}
In 2018, CA was named a NAFE top company for executive women.{{Cite news |title=Meet the 2018 NAFE Top Companies for Executive Women |language=en |work=Working Mother |url=https://www.workingmother.com/nafe-top-companies-for-executive-women-winners-2018 |access-date=2018-09-16}} CA was also included in the Bloomberg Gender-Equality Index (GEI) in 2018.{{Cite news |title=Terms of Service Violation |url=https://www.bloomberg.com/company/announcements/104-companies-included-first-sector-neutral-bloomberg-gender-equality-index/ |access-date=2018-09-16 |newspaper=Bloomberg L.p.}}
In 2018, for the fourth consecutive year, the Human Rights Campaign Foundation ranked CA as one of the Best Places to Work for LGBTQ+ Equality.{{Cite web |title=Best Places to Work 2018 |url=http://www.hrc.org/resources/best-places-to-work-2018 |access-date=2018-09-16 |website=Human Rights Campaign |language=en |archive-date=September 17, 2018 |archive-url=https://web.archive.org/web/20180917123700/http://www.hrc.org/resources/best-places-to-work-2018 |url-status=dead }}
CA CEO Mike Gregoire is a signatory of the CEO Action for Diversity and Inclusion pledge.{{Cite web |title=CEOs |url=https://www.ceoaction.com/ceos/?Page=1&CompanyLetters=C&Sort=Alphabetical |access-date=2018-09-16 |website=CEO Action for Diversity & Inclusion |language=en-US}}
= Work environments =
Image:Ditton Park from the air - geograph.org.uk - 3989589.jpg
For four consecutive years, 2015–2018, CA was named by Computerworld as one of the Best Places to Work in IT.{{Cite web |title=Best Places to Work in IT 2015 Employer Profile: CA Technologies |url=https://www.computerworld.com/bestplaces/detail/1238 |access-date=2018-09-16 |website=Computerworld |language=en}}{{Cite web |title=Best Places to Work in IT 2016 Employer Profile: CA Technologies |url=https://www.computerworld.com/bestplaces/detail/1328 |access-date=2018-09-16 |website=Computerworld |language=en}}{{Cite web |title=Best Places to Work in IT 2017 Employer Profile: CA Technologies |url=https://www.computerworld.com/bestplaces/detail/1419 |access-date=2018-09-16 |website=Computerworld |language=en}}{{Cite news |author=Mary K. Pratt |display-authors=etal |title=Best Places to Work in IT 2018 |language=en |work=Computerworld |url=https://www.computerworld.com/article/3279887/it-careers/best-places-to-work-in-it-2018.html?page=2 |access-date=2018-09-16}} In 2017, it was named to the Forbes list of America's Best Employers{{Cite news |title=America's Best Employers |language=en |work=Forbes |url=https://www.forbes.com/best-employers/list/#tab:rank |archive-url=https://web.archive.org/web/20150327164040/http://www.forbes.com/best-employers/list/#tab:rank |archive-date=March 27, 2015 |access-date=2018-09-16}} and recognized with a STAR Award for Leadership and Innovation by the Technology Services Industry Association (TSIA).{{Cite news |title=TSIA STAR Award Winners |work=Technology Services Industry Association |url=https://www.tsia.com/certifications-and-awards/star-awards/tsia-star-award-winners |access-date=2018-09-16}}
In 2018, CA was named to the Thomson Reuters World's Top 100 Technology companies{{Cite news |title=Top 100 Global Tech Leaders |language=en |url=https://www.thomsonreuters.com/en/products-services/technology/top-100.html |access-date=2018-09-16}} and for six consecutive years has been the recipient of the NorthFace ScoreBoard Award from Customer Relationship Management Institute (CRMI).{{Cite web |title=CRMI - NorthFace ScoreBoard Award Audit Program |url=https://www.crmirewards.com/nfsb_award_audit |access-date=2018-09-16 |website=www.crmirewards.com |language=en}}
Acquisitions
{{main|List of mergers and acquisitions by CA Technologies}}
CA had a long history of acquisitions in the software industry. It grew its portfolio and became successful through acquiring many companies in disparate fields, including enterprise system monitoring and management, ID management, security, and anti-virus, among others.{{cite web | last=Chirgwin | first=Richard | date=July 12, 2018 | url=https://www.theregister.com/2018/07/12/broadcom_ca_technologies/ | title=Weirdest. Acquisition. Ever. Broadcom buys CA Technologies | work=The Register}}
See also
References
{{Reflist|colwidth=30em}}
Further reading
- 21st Century Management: The Revolutionary Strategies That Have Made Computer Associates a Multibillion-Dollar Software Giant, by Hesh Kestin, (1992, Atlantic Monthly Press)
External links
- {{official website|http://www.ca.com/}}
- [https://ftpdocs.broadcom.com/cadocs/0/k010181e.pdf CA-SORT User's Guide, at Broadcom website]
{{Authority control}}
Category:1976 establishments in New York (state)
Category:2018 disestablishments in New York (state)
Category:1980s initial public offerings
Category:2018 mergers and acquisitions
Category:American companies established in 1976
Category:American companies disestablished in 2018
Category:Companies formerly listed on the New York Stock Exchange
Category:Companies formerly listed on the Nasdaq
Category:Defunct software companies of the United States
Category:Defunct computer companies based in New York (state)
Category:Financial technology companies
Category:Software companies established in 1976