CA Technologies

CA Technologies, Inc.
Company type	Public
Industry	Software
Founded	1976; 50 years ago
Founder	Charles B. Wang
Defunct	2018
Fate	Acquired by Broadcom Inc.
Headquarters	Manhattan, New York City (final headquarters), United States
Area served	Worldwide
Key people	Charles B. Wang (founder and former CEO), Russell Artzt (co-founder)
Products	Systems software for IBM mainframes, distributed computing platforms, virtual machines, cloud infrastructures
Number of employees	~7,000 (early 1990s)
Parent	Broadcom Inc. (from 2018)

CA Technologies, Inc., previously known as Computer Associates International, Inc. and CA, Inc., was a leading American multinational software company operating from 1976 until 2018. It expanded to become one of the largest independent software providers worldwide, at one stage ranking as the second largest. CA focused on creating systems software tailored for IBM mainframes, distributed computing platforms, virtual machines, and cloud infrastructures.

The company’s foundation was largely driven by Charles B. Wang, and its rapid expansion was primarily fueled by acquiring numerous smaller software firms within the IBM mainframe market. CA gained a reputation for significant workforce reductions following acquisitions and emphasized cash flow generation over ongoing product development. Clients often expressed dissatisfaction with CA’s technical support quality and its aggressive business tactics. In the early 2000s, the company became embroiled in a major accounting scandal that led to jail sentences for several top executives. Nevertheless, by the 2010s, CA had earned commendations for corporate responsibility and industry achievements.

With origins tracing back to both Switzerland (Zurich and Geneva) and New York City, CA maintained its headquarters on Long Island for much of its existence—initially located in Jericho and Garden City within Nassau County, later moving to Islandia in Suffolk County—before relocating to Manhattan in 2014. In 2018, semiconductor giant Broadcom Inc. acquired CA in a transaction valued at nearly $19 billion.

Origins

Computer Associates International emerged from the merger of a Swiss software enterprise and a New York-based data services firm. Samuel W. Goodner, a Texan employee of Sam Wyly’s University Computing Company (UCC), was assigned to manage Automation Center A.G., a Swiss company recently acquired by UCC. As UCC faced financial difficulties around 1970, Goodner departed to establish Computer Associates A.G. in Zurich, concentrating on developing software products.

Following IBM’s 1969 decision to separate hardware sales from software licensing, new opportunities arose within the software sector. Goodner leveraged this shift by creating products targeted at IBM mainframe systems. Despite operating with limited capital, Computer Associates secured Hoffmann-La Roche as an early client through its efficient sorting utility, CA-SORT, introduced in Europe in 1971 as an alternative to IBM’s native sort function on System/360 and System/370 platforms.

To broaden its reach beyond Switzerland, Computer Associates formed a holding entity and arranged distribution agreements throughout Europe; some distributors were eventually integrated as subsidiaries. By 1971, the company had established its headquarters in Geneva, which remained its base throughout the 1970s. In 1974, Pansophic Systems began marketing CA-SORT in the United States under the name Pansort. By this time, the firm operated under the name Computer Associates International Ltd.

Concurrently, New York-based Standard Data Corporation, founded in 1959 primarily as a service bureau, expanded into software product sales with solutions such as SYMBUG—a symbolic debugger for COBOL running on IBM VM/370 environments. Standard Data created a Software Products Division led by vice-president Charles B. Wang, who sought to capitalize on IBM’s unbundling policy by promoting mainframe software products.

In January 1976, Standard Data secured exclusive U.S. distribution rights for CA-SORT from Pansophic Systems, reinstating the original product name and acquiring rights to the EARL (Easy Access Report Language) report generator as well. This strategic acquisition positioned Standard Data as a significant participant in the American mainframe software market.

1970s

In October 1976, the union of Computer Associates International Ltd with the Software Products Division of Standard Data Corporation resulted in the formation of Computer Associates, Inc., appointing Charles Wang as president. The newly formed entity distributed CA-SORT across the United States and the Western Hemisphere, while its European division managed certain Standard Data products such as SYMBUG. The company's initial office was situated at 655 Madison Avenue in Manhattan.

This merger established the foundation for what is now known as Computer Associates, beginning with a team of four employees including co-founder Russell Artzt, who had previously worked alongside Wang at Standard Data Corporation and played a key role in early software projects. By September 1977, the firm operated under the name Trans-American Computer Associates, Inc., promoting products like DYNAM/D, a disk utility designed for IBM mainframes.

In 1979, the company moved its U.S. headquarters to 125 Jericho Turnpike in Jericho, New York. By 1980, Computer Associates International had grown to approximately 300 employees worldwide and provided a portfolio of 12 products to nearly 9,000 client locations, with the United States serving as its primary market. That year, Wang gained complete ownership by purchasing the Swiss parent company’s stake, consolidating control under Computer Associates International, Inc..

1980s

In 1981, Computer Associates launched its initial public offering (IPO), securing $3.2 million and listing its shares on NASDAQ under the symbol "CASI".

The company's first significant acquisition occurred in 1982 with the merger of Capex Corporation, which increased CA's revenue by half. While Computer Associates excelled in IBM DOS mainframe software, Capex was recognized for its strength in IBM OS mainframe solutions, complementing CA’s existing offerings. This deal initiated an aggressive acquisition strategy centered on third-party mainframe software.

By 1986, CA had shifted its headquarters to Garden City, New York, expanding into several offices within Nassau County. That year, revenues reached $265 million with net income exceeding $30 million; revenues from PC software were estimated between $60 and $70 million.

A landmark transaction took place in 1987 when CA acquired Uccel for $800 million—a deal substantially larger than previous ones. Following this acquisition, CA restructured operations leading to layoffs affecting nearly half of Uccel’s workforce, demonstrating a focus on cost reduction. Founder and CEO Haefner emerged as the largest individual shareholder with an approximate 25% stake.

Also in 1987, CA’s stock transitioned to the New York Stock Exchange under the ticker "CA". The subsequent year saw the purchase of key software assets from Consco. By the end of the decade, Computer Associates became only the second software company after Microsoft to exceed $1 billion in sales. In its 1990 "Software's Heavy Hitters" report, Information Week ranked Computer Associates ahead of Microsoft.

1990s

At the start of the 1990s, Computer Associates encountered criticism alongside a stock price decline exceeding 50% in 1990. In response, the company expanded internationally into markets such as Japan, Canada, Africa, and Latin America; revised its software maintenance pricing structure; and enhanced compatibility with vendors including Hewlett-Packard, Apple, and Digital Equipment Corporation. The recession in the early 1990s further affected CA’s performance, with stock values dropping around 70% by October 1991. At that time, CA employed roughly 7,000 personnel and generated sales near $1.4 billion.

In 1991, CA acquired Pansophic Systems. By 1992, it relocated its headquarters to a substantial corporate campus in Islandia, New York, consolidating operations within Nassau County. This relocation positioned CA as Long Island’s second-largest private employer after Grumman Aerospace and was supported by local tax incentives and financial assistance.

Growth continued through acquisitions: ASK Group was purchased in 1994 (bringing in the Ingres database system), Legent Corporation was acquired for $1.78 billion in 1995—then the largest software industry deal—and Cheyenne Software for $1.2 billion in 1996. In 1999, CA completed its largest acquisition yet by acquiring Platinum Technology International for $3.5 billion.

Legal issues arose including a lawsuit filed by Electronic Data Systems (EDS) in 1992 alleging breach of contract and antitrust violations; both parties settled by 1996. In 1998, a hostile takeover attempt for Computer Sciences Corporation (CSC) resulted in bribery allegations against CA founder and CEO Charles Wang.

By the late 1990s, CA dominated the mainframe utility software sector—a highly profitable but less publicly visible industry compared to PC software companies like Microsoft or Lotus. A profile published by Business Week in 1996 emphasized CA’s strong profitability despite limited consumer recognition.

Executive compensation drew scrutiny when Wang and two other executives received stock grants valued at $1.1 billion in May 1998. In 1999, Wang received an unprecedented $670 million stock grant amid declining European markets and an Asian economic downturn that impacted CA’s financial results. These compensation packages sparked controversy as they coincided with a $675 million after-tax charge related to $1.1 billion in executive pay.

Company culture

Computer Associates drew criticism for emphasizing sales at the expense of customer support, which led to a reputation for unsatisfactory client relations. The sales team frequently perceived customers as adversaries. By 2001, prominent media outlets reported widespread dissatisfaction among clients regarding steep pricing and subpar technical assistance. Nevertheless, CA's software remained essential to many corporate IT systems, creating a high barrier for customers seeking alternative vendors. This reliance ensured consistent revenue streams but also contributed to an air of managerial hubris. While acquisitions broadened CA’s product lineup, detractors argued that the company often relegated newly acquired software to mere maintenance status.

The organizational culture reflected founder Charles Wang’s immigrant roots and education at Queens College, setting it apart from the Silicon Valley mindset. The sales force predominantly consisted of individuals from blue-collar backgrounds in New York’s outer boroughs and Long Island, reinforcing an image characterized by intelligence, aggressiveness, and steady profitability.

Within the company, abrupt layoffs frequently followed acquisitions, even as senior executives received generous compensation packages. Significant workforce reductions took place after absorbing Applied Data Research and Cullinet. Industry figures such as Sam Wyly of Sterling Software voiced apprehensions about CA’s corporate culture but proceeded with transactions focused on shareholder value.

Some analysts provided a more nuanced perspective, recognizing CA’s ongoing investment in critical database products like DATACOM/DB and IDMS and its attempts to unify its product range. Staff cuts were often interpreted as strategic business streamlining rather than neglect. In certain instances, CA committed resources to acquired firms as part of broader internal development efforts, exemplified by its handling of Cheyenne Software.

Accounting scandal

By the year 2000, Computer Associates had completed around 200 acquisitions. That same year, Sanjay Kumar succeeded founder Charles Wang as CEO while Wang retained the chairman position. In 2002, Wang departed entirely, with Kumar assuming both CEO and chairman roles.

A class-action lawsuit filed in 2000 accused CA of inflating revenues by over $500 million during fiscal years 1998 and 1999 to boost its stock price artificially. In 2001, investor Sam Wyly initiated a proxy contest aiming to replace the board due to dissatisfaction with management and their handling of his acquisition, Sterling Software. Despite Wyly’s attempts—including appeals to board member Haefner—the existing leadership maintained control; Wyly ended his campaign in 2002 after receiving a $10 million settlement.

By early 2002, investigations by the SEC and U.S. Attorney’s Office targeted CA for fraudulent accounting practices. Moody’s downgraded CA’s credit rating, forcing cancellation of planned debt refinancing. Additionally, the Department of Justice imposed restrictions on CA’s acquisition activities that year.

SEC allegations stated that between 1998 and 2000, CA manipulated revenue recognition by including contracts signed after quarter-end to meet Wall Street earnings targets prematurely reporting $3.3 billion in revenues from 363 agreements. The executives’ significant stock ownership provided motivation to exaggerate financial results.

Kumar resigned from his CEO and chairman positions in 2004 and soon exited the company altogether. CA restated earnings for 2000 and 2001 due to improper revenue recognition practices. To avoid indictment, the company settled with the SEC and DOJ by agreeing to pay $225 million in restitution and implementing comprehensive reforms in corporate governance and accounting procedures.

Eight senior executives pleaded guilty to charges related to fraud or obstruction; several received prison terms. Kumar was sentenced in 2006 to 12 years in prison and fined $8 million for his involvement in the scandal. Following these events, CA undertook significant leadership restructuring at the senior management level.

In total, the company faced investigation expenses and penalties exceeding $500 million connected to this scandal.

2000s

By 2001, Computer Associates ranked as the fourth-largest independent software firm, employing 18,000 staff members. Efforts to expand beyond its core mainframe software market met with only modest results.

In December 2003, CA established the India Technology Centre in Hyderabad. The following year, John Swainson, a former IBM executive, took over as CEO with the objective of enhancing operational efficiency; however, he encountered difficulties related to the company's internal financial and accounting systems.

The organization unveiled its Enterprise IT Management (EITM) strategy to optimize enterprise IT processes, and by 2006, its workforce had decreased to approximately 15,000 employees.

In January 2006, Computer Associates International, Inc. rebranded itself as CA, Inc., signaling a renewed focus on simplifying enterprise IT management. This rebranding occurred concurrently with legal troubles involving the company's founder.

Starting in May 2008, CA was included in the Nasdaq-100 index.

On September 1, 2009, CEO John Swainson announced his intention to retire at the end of that year. Subsequently, William E. McCracken was named chairman and CEO on January 28, 2010.

2010s

In May 2010, the company adopted the name CA Technologies to better represent its expanded range of products and services.

That same year marked an acceleration in CA's cloud computing initiatives through eight acquisitions: 3Tera, Nimsoft, NetQoS, Oblicore, Cassatt, 4Base Technology, Arcot Systems, and Hyperformix. Additionally, Replay Solutions was acquired. In 2011, CA purchased ITKO for $330 million and continued expanding with acquisitions of Nolio for approximately $40 million and Layer7 in subsequent years.

Previously involved in consumer antivirus and internet security software, CA divested these operations in 2011 to Updata Partners, which established Total Defense. Following this divestiture, CA concentrated its efforts on business-to-business mainframe and distributed IT infrastructure applications.

Michael P. Gregoire was appointed CEO and joined the board on January 7, 2013. In June 2014, CA moved its headquarters from Islandia, New York to a new location at 520 Madison Avenue in Manhattan.

During 2015, CA completed four acquisitions: Rally Software for $480 million, Unifyalm, Gridtools, Idmlogic, and Xceedium.

The company further expanded in 2016 and 2017 by acquiring BlazeMeter, Automic, Veracode, and Runscope.

For the fiscal year ending March 31, 2018, CA Technologies reported revenues totaling $4.2 billion. Mainframe products accounted for roughly $2.2 billion; enterprise solutions contributed about $1.75 billion; and services generated close to $300 million. The company maintained operations across more than 40 countries with a workforce of approximately 11,300 employees.

On August 8, 2018, CEO Mike Gregoire was appointed chairman of the board, succeeding Art Weinbach.

Acquisition by Broadcom

On July 11, 2018, Broadcom Inc. revealed plans to purchase CA Technologies for $18.9 billion in cash. CA's CEO, Mike Gregoire, commented that this merger "combines our software expertise with Broadcom's dominance in the semiconductor sector." While the financial aspects of the acquisition were acknowledged, some analysts expressed skepticism regarding its strategic coherence. The Register famously described it as the "Weirdest. Acquisition. Ever." The transaction was finalized on November 5, 2018.

After the acquisition, Broadcom—recognized for its stringent cost-reduction measures—swiftly implemented substantial layoffs affecting former CA personnel across Silicon Valley, Plano, Islandia, and Manhattan. Estimates suggest approximately 40% of CA’s U.S.-based employees, nearly 2,000 individuals, were dismissed. The expansive CA campus in Islandia was subsequently vacated and repurposed. This event signified a profound transformation in CA Technologies’ organizational framework and international operations under Broadcom’s stewardship.

Corporate responsibility and recognition

In response to image challenges during the mid-1990s, Computer Associates established a dedicated public relations team and introduced more progressive human resources policies aimed at improving employee relations.

Sustainability

CA Technologies earned accolades for its environmental initiatives, featuring in Newsweek’s Green rankings in 2010 and maintaining a consistent presence on the Dow Jones Sustainability Indexes from 2012 through 2018. The company was also recognized as one of America’s Greenest firms by Newsweek in both 2015 and 2016.

In 2017, CA received an A− rating from CDP for its environmental transparency and performance. According to its sustainability report released in 2018, the company had achieved over a 35% reduction in its Greenhouse Gas emissions since 2006. That same year, it was honored with the Climate Leadership Award for Excellence in GHG Management and was listed among Barron’s 100 Most Sustainable Companies.

Additionally, CA was named one of the World’s Most Ethical Companies by the Ethisphere Institute for the third year running in 2018, highlighting its dedication to principled business conduct.

Equality and diversity

CA Technologies was acknowledged for fostering diversity and inclusion within its workforce. It was repeatedly named among the best employers for multicultural women by Working Mother Magazine from 2015 through 2018 and appeared on the 100 Best Companies list from 2015 to 2017. In 2017, InHerSight awarded CA a rating of 4.3 out of 5 stars as a Top 10 IT Company for Women. Fatherly.com also ranked CA among the Best Places to Work for New Dads in both 2015 and 2016.

In 2018, CA earned recognition as a NAFE top company supporting executive women and was included in the Bloomberg Gender-Equality Index (GEI). For the fourth consecutive year, the Human Rights Campaign Foundation designated CA as one of the Best Places to Work for LGBTQ+ Equality.

Reflecting the company’s commitment to inclusive leadership, CEO Mike Gregoire is a signatory of the CEO Action for Diversity and Inclusion pledge.

Work Environments

Between 2015 and 2018, CA consistently earned recognition from Computerworld as one of the premier workplaces within the IT sector. In 2017, the company was featured on Forbes' roster of America's Best Employers and was honored with a STAR Award for Leadership and Innovation by the Technology Services Industry Association (TSIA).

By 2018, CA secured a position among Thomson Reuters' World's Top 100 Technology firms and was the recipient of the NorthFace ScoreBoard Award from the Customer Relationship Management Institute (CRMI) for six years running.

Acquisitions

CA broadened its market presence and business scope through a series of strategic acquisitions spanning enterprise system monitoring, identity management, cybersecurity, and antivirus solutions. These moves enhanced both its product offerings and its standing within the industry.

External links

CA-SORT User's Guide, Broadcom website