CA Technologies has agreed to acquire Rally Software Development Corp., a Boulder-based software and services firm, for $19.50 per share, or roughly $480 million.
Shares of Rally jumped 45 percent on news of the deal, while CA was off 1.5 percent.
Rally has approximately 500 employees across four continents and last-year sales of $88 million.
“Software applications are changing the world, disrupting established business models and bringing in completely new experiences in areas from travel to banking. In order to compete, businesses need to develop high quality software quickly and reliably,” said Mike Gregoire, CA’s CEO. “Rally is a leading provider of Agile development software and services, with offerings that complement and expand CA’s strengths in the areas of DevOps and Management Cloud.
“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.”
With users in more than 135 countries and nearly every industry, Rally works with some of the world’s largest brands, including 35 of the Fortune 100. The acquisition of Rally is a significant milestone in CA’s strategy to help customers thrive in the application economy, in which software applications are ubiquitous, driving every facet of business in every part of the world, the company 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,” said Tim Miller, Rally’s Chairman and CEO. “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.”