Information Unlimited Software

CA Technologies, Inc.

Company type	Public
Industry	Software
Founded	1976
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)
Products	Enterprise software solutions for IBM mainframes, distributed computing platforms, virtual machines, cloud infrastructure
Number of employees	Approximately 7,000 (early 1990s)
Parent	Broadcom Inc. (from 2018)

CA Technologies, Inc., previously known as Computer Associates International, Inc. and CA, Inc., operated as a multinational American software company specializing in enterprise solutions from 1976 until 2018. At its peak, CA ranked among the largest independent software firms worldwide, once holding the second position. The company focused on developing system software tailored for IBM mainframes, distributed computing platforms, virtual machines, and cloud infrastructures.

The company’s foundation was largely attributed to Charles B. Wang, with its swift expansion driven by acquiring numerous smaller software companies within the IBM mainframe arena. CA gained a reputation for significant workforce reductions following acquisitions and often emphasized generating revenue from acquired products rather than investing in their ongoing development. Customers regularly expressed dissatisfaction with CA’s technical support quality and criticized its aggressive business tactics. In the early 2000s, the firm became embroiled in a substantial accounting scandal that led to imprisonment for several top executives. However, by the 2010s, CA had earned recognition from industry organizations for corporate responsibility and maintaining positive workplace environments.

Originating through entities in Switzerland (Zurich and Geneva) as well as New York City, CA maintained its headquarters on Long Island for most of its existence—initially located in Jericho and Garden City within Nassau County, then moving to Islandia in Suffolk County—before relocating to Manhattan in 2014. In 2018, semiconductor company Broadcom Inc. acquired CA in a deal valued at nearly $19 billion.

Origins

The roots of Computer Associates International trace back to a Swiss software enterprise combined with a data services firm based in New York.

Samuel W. Goodner, a Texan employed by Sam Wyly’s University Computing Company (UCC), was assigned to manage Automation Center A.G., a Swiss organization purchased by UCC. Confronted with financial difficulties at UCC around 1970, Goodner departed to launch his own software development venture. He established Computer Associates A.G. in 1970, headquartered in Zurich, Switzerland.

Following IBM’s 1969 decision to separate hardware sales from software and services—a move that created new opportunities for software vendors—Goodner seized the chance to create products targeting the IBM mainframe market.

Although operating with limited capital, Computer Associates secured Hoffmann-La Roche as an early client through its efficient sorting software. Beginning in 1971, the company marketed the CA-SORT product throughout Europe as an alternative sorting utility compatible with IBM System/360 and System/370 mainframes. To extend its reach beyond Switzerland, it formed a holding company and established distributor agreements across Europe; some distributors were eventually integrated into Computer Associates itself. By 1971, Computer Associates International SA was based in Geneva, which remained its central office throughout the decade. By mid-1974, Pansophic Systems distributed CA-SORT in the United States under the name Pansort. At this stage, the company was known as Computer Associates International Ltd.

Concurrently, New York's Standard Data Corporation, founded in 1959 and located at 1540 Broadway, primarily functioned as an electronic data processing service bureau. In 1973, it launched SYMBUG, a symbolic debugger designed for COBOL on IBM’s VM/370 platform. By 1974, Standard Data had expanded its Software Products Division under vice-president Charles B. Wang and offered multiple VM/CMS products including VM/370 ISAM. Similar to Goodner’s approach, Wang sought to capitalize on IBM’s unbundling by creating software solutions catering to IBM mainframes.

In January 1976, Standard Data secured exclusive U.S. distribution rights for CA-SORT from Pansophic Systems, reinstating the original product name. Additionally, it acquired U.S. rights for EARL (Easy Access Report Language), a report generation tool.

1970s

In October 1976, Computer Associates, Inc. was established through the merger of Computer Associates International Ltd and the Software Products Division of Standard Data Corporation, with Charles Wang appointed as president. The newly formed company distributed CA-SORT across the Americas, while its European division managed some of Standard Data’s products, including SYMBUG. Initially, operations were based at 655 Madison Avenue in Manhattan. Meanwhile, the core part of Standard Data continued to operate independently well into the 2010s.

The origins of what evolved into Computer Associates are typically traced back to 1976, beginning with a small team of four employees. Among them was co-founder Russell Artzt, who had collaborated with Wang at Standard Data and contributed to the development of early software offerings.

By September 1977, the American branch was known as Trans-American Computer Associates, Inc., promoting products like DYNAM/D—a disk utility designed for IBM mainframes running DOS/360 and its successors. The trademark emphasized its American development roots rather than European.

In 1979, the company shifted 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 offered a portfolio of 12 products sold to around 9,000 client sites, with the United States representing its largest market. That same year, Wang acquired the Swiss parent company, making Computer Associates International, Inc. entirely under his ownership.

1980s

Computer Associates went public in 1981, securing $3.2 million through a NASDAQ offering under the ticker symbol "CASI".

The first significant acquisition came in 1982 when CA merged with Capex Corporation, which increased its revenue by half. While CA had a strong foothold in IBM DOS mainframe software, Capex specialized in IBM’s OS mainframe market, thereby complementing CA’s product range.

This deal initiated an aggressive acquisition approach centered on third-party mainframe software.

By 1986, CA had moved its headquarters to Garden City, New York, expanding into several buildings within Nassau County. That year’s revenue hit $265 million with net income exceeding $30 million; PC software sales were estimated between $60 and $70 million.

In 1987, CA completed a landmark acquisition of Uccel for $800 million—significantly larger than any previous purchase. Following this transaction, CA implemented extensive workforce reductions typical of its integration strategy. Founder Charles B. Wang emerged as the largest individual shareholder with a 25% ownership stake.

That year also saw CA’s stock transfer to the New York Stock Exchange under the ticker "CA". In 1988, it acquired the key software product from Consco.

By the end of the decade, CA had become the second software firm after Microsoft to exceed $1 billion in sales. Information Week ranked Computer Associates ahead of Microsoft in its 1990 "Software's Heavy Hitters" list.

1990s

At the start of the 1990s, Computer Associates faced criticism and experienced a stock price decline exceeding 50% in 1990. To counter this downturn, the company expanded into international markets such as Japan, Canada, Africa, and Latin America; restructured software maintenance fees; and enhanced compatibility with vendors including Hewlett-Packard, Apple, and Digital Equipment Corporation. The recession early in the decade further affected CA’s performance—with stock prices falling roughly 70% from their May 1989 peak by October 1991. At that point, CA employed about 7,000 people and generated around $1.4 billion in revenue.

In 1991, CA acquired Pansophic Systems. After over two years of planning, it moved its headquarters to a large corporate campus in Islandia, New York in 1992—consolidating operations and becoming Long Island’s second-largest private employer. Suffolk County provided considerable tax incentives and financial support to retain CA’s presence.

In 1994, CA purchased the ASK Group and continued marketing the Ingres database system under various brand names. In 1992, customer Electronic Data Systems (EDS) sued CA for breach of contract and antitrust violations; both parties filed countersuits before settling in 1996.

Throughout the decade, CA made major acquisitions: Legent Corporation for $1.78 billion in 1995—the largest software industry deal at that time—Cheyenne Software for $1.2 billion in 1996; and finally acquiring Platinum Technology International for $3.5 billion in 1999.

In 1998, CA’s hostile bid for consulting firm Computer Sciences Corporation (CSC) failed and resulted in a bribery lawsuit against founder and CEO Charles Wang filed by CSC’s chairman.

By late-1990s standards, CA dominated mainframe utility software tools—a highly profitable but less publicly visible segment compared to PC-focused companies like Microsoft or Lotus Software. A 1996 Business Week profile aptly titled "Computer Associates: Sexy? No. Profitable? You Bet" captured this industry standing.

In May 1998, stock grants valued at $1.1 billion were awarded to Wang and two others. In 1999, Wang received a record-setting $670 million stock grant vesting from a prior option issued in 1995 amid slowing growth in European and Asian markets that impacted CA’s profits and share price. These grants sparked controversy; during this period the company recorded a $675 million after-tax charge related to executive payouts totaling $1.1 billion.

Company culture

Computer Associates (CA) faced widespread criticism for emphasizing sales performance at the expense of customer service, resulting in a reputation for strained client relationships. The sales team frequently regarded customers as adversaries. By 2001, prominent media outlets highlighted CA's steep pricing and insufficient technical assistance, with Fortune labeling it among the most disliked companies by its own clientele.

Accusations were made that CA intentionally placed acquired software products into a maintenance-only phase to maximize revenue streams. These expensive solutions were deeply embedded in corporate IT infrastructures, creating significant barriers for customers wishing to switch providers. This reliance ensured consistent income but also contributed to a sense of managerial arrogance. The Register commented that CA’s acquisitions often became "the place decent software goes to die." Despite ongoing criticism, CA repeatedly outlasted its opponents.

The organizational culture mirrored founder Charles Wang's immigrant experience and education at Queens College, setting it apart from Silicon Valley traditions. Wang steered clear of industry analysts and venture capitalists, while CA’s sales personnel predominantly came from working-class backgrounds in New York’s outer boroughs and Long Island. This background fostered a reputation for being "intelligent, assertive, and reliably profitable."

Within the company, CA was known for its harsh employment practices, frequently terminating employees without warning while executives received substantial remuneration. Large-scale layoffs were common following acquisitions; for instance, Applied Data Research saw 200 staff dismissed in a single day in 1988, and Cullinet experienced approximately 400 job cuts in 1989. Sterling Software’s Sam Wyly expressed reservations about CA’s corporate culture during his company’s sale but proceeded due to fiduciary responsibilities.

Industry historian Martin Campbell-Kelly recognized ongoing product improvements such as those made to DATACOM/DB and IDMS and efforts toward better interoperability. He interpreted workforce reductions as necessary streamlining of underperforming divisions. Likewise, Joseph A. Piscopo, founder of Pansophic Systems (acquired in 1991), observed that while many acquisitions were reduced to minimal maintenance teams, others like Cheyenne Software benefited from investments aligned with CA’s internal product development priorities.

Accounting scandal

By the year 2000, Computer Associates had completed around 200 acquisitions. That same year, Sanjay Kumar succeeded Charles Wang as CEO while Wang retained the chairman position; Kumar later assumed the chairmanship in 2002 following Wang’s departure.

In 2000, shareholders initiated a class-action lawsuit accusing CA of overstating revenues by more than $500 million during fiscal years 1998 and 1999 to artificially boost its stock price. A proxy contest led by shareholder Sam Wyly in 2001 sought changes to the board due to dissatisfaction with management and treatment of his Sterling Software acquisition. Despite these efforts, Wyly was unable to gain control and exited in 2002 after receiving $10 million.

By early 2002, investigations by the SEC and U.S. Attorney into CA’s accounting practices became public knowledge. Moody’s downgraded CA’s credit rating, which resulted in the cancellation of planned debt refinancing. That year, the Department of Justice also restricted CA’s ability to pursue further acquisitions.

The SEC charged CA and several top executives with securities fraud, alleging that the company manipulated its books by keeping accounting periods open past quarter-end to include revenue from contracts signed afterward, thereby meeting Wall Street expectations. Between 1998 and 2000, CA prematurely recognized $3.3 billion in revenue from 363 contracts. Executives held large stock option packages that incentivized inflating financial results.

Kumar resigned as CEO and chairman in 2004 and left the organization two months later. CA restated earnings for fiscal years 2000 and 2001 due to improper revenue recognition practices. That same year, CA settled with both the SEC and DOJ by paying $225 million in restitution and agreeing to implement governance reforms, thus avoiding indictment related to the so-called "35 day month" accounting scandal.

Eight executives pleaded guilty to charges of fraud or obstruction; several received prison sentences. Kumar notably was sentenced in 2006 to 12 years imprisonment along with an $8 million fine for his involvement in the fraud. The company underwent significant leadership changes amid the scandal and incurred investigation expenses and penalties exceeding $500 million.

2000s

By 2001, Computer Associates ranked as the fourth-largest independent software firm, employing around 18,000 staff members. Attempts to broaden its portfolio beyond mainframe software yielded only modest results.

In December 2003, CA inaugurated its India Technology Centre located in Hyderabad. The following year, John Swainson, a former IBM executive, took over as CEO. Swainson's objective was to rejuvenate the company; however, he encountered obstacles related to internal financial and accounting system complications.

During this era, CA unveiled its Enterprise IT Management (EITM) strategy aimed at integrating enterprise IT management processes. By 2006, the workforce had decreased to approximately 15,000 employees.

In January 2006, the company underwent a rebranding from Computer Associates International, Inc. to CA, Inc., reflecting a renewed emphasis on streamlining enterprise IT management. This rebranding coincided with founder Kumar’s admission of guilt on multiple charges.

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

On September 1, 2009, CEO John Swainson announced his intention to retire by the end of the year. Subsequently, William E. McCracken assumed the roles of chairman and CEO in January 2010.

2010s

In May 2010, CA adopted a new corporate identity as CA Technologies to better represent its broadened IT solutions portfolio.

That same year, CA completed eight acquisitions—including companies such as 3Tera, Nimsoft, NetQoS, Oblicore, and Cassatt—strengthening its position in cloud computing. Additionally, it acquired Replay Solutions. In 2011, CA invested $330 million to acquire ITKO and later purchased application deployment specialist Nolio for roughly $40 million in 2013, along with Layer7.

Having previously developed antivirus and Internet security products for personal computers, CA divested its antivirus division to Updata Partners in 2011; this entity was rebranded as Total Defense. This move allowed CA to concentrate on business-to-business IT infrastructure solutions.

Michael P. Gregoire was appointed CEO in January 2013. In June 2014, CA discreetly moved its headquarters from Islandia, New York to an office at 520 Madison Avenue in Manhattan.

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

In the years 2016 and 2017, CA further expanded 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 about $2.2 billion; enterprise solutions contributed approximately $1.75 billion; and services generated near $0.3 billion. The company maintained operations across more than 40 countries with an employee base of around 11,300.

On August 8, 2018, CEO Mike Gregoire was appointed chairman of the board following Art Weinbach’s retirement.

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 "brings together our software capabilities with Broadcom's expertise in semiconductors." The announcement caught some industry experts off guard due to the minimal overlap between their businesses. Although the transaction was financially sound, its strategic purpose was questioned. The Register described it as the "Weirdest. Acquisition. Ever." The acquisition was finalized on November 5, 2018.

This deal represented a shift in dynamics, as noted by The Register, with CA Technologies—previously known for aggressive acquisitions—becoming the acquired entity under Broadcom. Known for extensive workforce reductions after acquisitions, Broadcom swiftly implemented layoffs affecting former CA employees across Silicon Valley, Plano, Islandia, and Manhattan. Reports suggested that approximately 40% of CA’s U.S.-based staff, nearly 2,000 workers, were dismissed. Following these cuts, the sizable CA campus in Islandia was vacated and has remained unused since.

Corporate responsibility and recognition

During the mid-1990s, Computer Associates tackled its public perception challenges by creating a dedicated public relations team and adopting more employee-centric human resources policies.

Sustainability

In 2010, CA earned recognition from Newsweek as one of the greenest companies and was included in the Dow Jones Sustainability Indexes (DJSI) from 2012 through 2018. It was acknowledged as one of America’s Greenest companies in both 2015 and 2016.

By 2017, CA achieved an A− rating from CDP for its environmental transparency and performance. Its 2018 corporate sustainability report highlighted a reduction exceeding 35% in its Greenhouse Gas Footprint since 2006. That same year, CA received the Climate Leadership Award for Excellence in GHG Management and appeared on Barron's list of the 100 Most Sustainable Companies.

In February 2018, for the third year running, CA was recognized by the Ethisphere Institute as one of the World's Most Ethical Companies.

Equality and diversity

Between 2015 and 2018, Working Mother Magazine honored CA Technologies as one of the best employers for multicultural women and included it among the 100 Best Companies from 2015 to 2017. In 2017, InHerSight rated CA with 4.3 out of 5 stars, ranking it among the Top 10 IT Companies for Women. Additionally, Fatherly.com identified CA as one of the Best Places to Work for New Dads in both 2015 and 2016.

In 2018, CA was recognized by NAFE as a top company supporting executive women and was listed in Bloomberg’s Gender-Equality Index (GEI). For the fourth year consecutively, the Human Rights Campaign Foundation named CA among the Best Places to Work for LGBTQ+ Equality.

Mike Gregoire, CEO of CA, is a signatory of the CEO Action for Diversity and Inclusion pledge, highlighting the organization’s dedication to fostering diversity and inclusiveness within its workforce.

Work environments

From 2015 through 2018, CA appeared on Computerworld’s list of Best Places to Work in IT. In 2017, it was featured on Forbes’ America’s Best Employers list and received a STAR Award for Leadership and Innovation from the Technology Services Industry Association (TSIA).

In 2018, CA ranked among Thomson Reuters' World's Top 100 Technology companies and secured the NorthFace ScoreBoard Award from the Customer Relationship Management Institute (CRMI) for six years running.

Acquisitions

CA broadened its software offerings by acquiring multiple companies specializing in enterprise system monitoring, identity management, security solutions, and antivirus technologies, significantly enhancing its market footprint and fueling expansion.

See also

• CA IT Process Automation Manager
• Computer Associates International, Inc. v. Altai, Inc.
• Tech companies in the New York metropolitan area

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

• CA-SORT User's Guide, Broadcom website