Integrated Software Systems Corporation

CA Technologies, Inc.

Company type	Public
Industry	Enterprise software
Founded	1976 (1976)
Founder	Charles B. Wang
Defunct	2018
Fate	Acquired by Broadcom Inc.
Headquarters	Manhattan, New York City , United States
Area served	Worldwide
Key people	Charles B. Wang (founder)
Products	Systems software for IBM mainframes, distributed computing, virtual machines, cloud infrastructure
Number of employees	Approximately 7,000 (early 1990s)
Parent	Broadcom Inc.

CA Technologies, Inc., previously known as Computer Associates International, Inc. and later as CA, Inc., was an American multinational company specializing in enterprise software development from 1976 until 2018. At its peak, CA ranked as the second-largest independent software firm worldwide. The company developed systems software tailored for IBM mainframes, distributed computing platforms, virtual machines, and cloud infrastructures.

The company’s foundation was chiefly attributed to Charles B. Wang, and its swift expansion was largely fueled by acquiring numerous smaller software companies within the IBM mainframe arena. CA gained a reputation for implementing extensive employee layoffs following acquisitions and often emphasized cash flow generation over advancing product quality. The firm faced frequent customer complaints regarding inadequate technical support and an adversarial business stance. In the early 2000s, CA was embroiled in a significant accounting fraud scandal that resulted in prison terms for several top executives. Nevertheless, by the 2010s, the company received accolades for corporate social responsibility from various industry bodies.

CA’s roots trace back to both Switzerland—specifically Zurich and Geneva—and the United States, with its primary headquarters situated predominantly on Long Island. Initially based in Jericho and Garden City within Nassau County, it later operated from Islandia in Suffolk County for about twenty years before moving to Manhattan in 2014. In 2018, semiconductor giant Broadcom Inc. completed the acquisition of CA Technologies in a deal valued close to $19 billion.

Origins

The beginnings of Computer Associates International stemmed from a Swiss software enterprise alongside a New York-based data services company.

Samuel W. Goodner, who worked under Sam Wyly at University Computing Company (UCC), was assigned to manage Automation Center A.G., a Swiss firm acquired by UCC. When UCC encountered financial difficulties around 1970, Goodner departed to establish his own software venture. He founded Computer Associates A.G. in Zurich that same year.

IBM’s 1969 decision to separate hardware sales from software and services created fresh opportunities for software developers. Goodner seized this chance by creating software targeted at the IBM mainframe sector.

Despite limited funding, Computer Associates secured Hoffmann-La Roche as a client by delivering an exceptionally efficient sorting application. Beginning in 1971, their CA-SORT product was marketed throughout Europe as an alternative to IBM’s sorting utility on System/360 and System/370 systems. The company expanded its reach across Europe through holding companies and acquisitions, maintaining Geneva as its headquarters during the 1970s. By mid-1974, Pansophic Systems distributed CA-SORT in the United States under the name Pansort. At this stage, the entity was known as Computer Associates International Ltd.

Meanwhile, in New York City, Standard Data Corporation, founded in 1959 and located at 1540 Broadway, specialized in electronic data processing service bureaus. By 1973, it had developed SYMBUG, a symbolic debugger designed for COBOL running on IBM mainframe VM/370 environments, along with other VM/CMS offerings. Standard Data established a Software Products Division headed by vice-president Charles B. Wang. Wang sought to capitalize on IBM’s unbundling policy by creating 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. Additionally, it acquired rights to distribute the EARL report generator software.

1970s

In October 1976, Computer Associates International Ltd merged with the Software Products Division of Standard Data Corporation, creating Computer Associates, Inc. Charles Wang was appointed president of the newly formed company. While the Americas division promoted CA-SORT, the European branch managed certain Standard Data offerings such as SYMBUG. The initial headquarters were located at 655 Madison Avenue in Manhattan. Meanwhile, the original Standard Data Corporation continued operating independently, providing computing services well into the 2010s.

This merger in 1976 represents the origin of the present-day Computer Associates. At its inception, the company had just four employees, including co-founder Russell Artzt, who collaborated with Wang on early software development.

By September 1977, the U.S. operation was known as Trans-American Computer Associates, Inc., under which it trademarked products like DYNAM/D—a disk utility tailored for IBM mainframes—emphasizing its American roots.

In 1979, the U.S. offices were moved to 125 Jericho Turnpike in Jericho, New York. By 1980, Computer Associates International had expanded to approximately 300 employees worldwide and offered a portfolio of 12 products deployed at around 9,000 customer locations, with the United States representing its primary market. That same year, Wang secured full ownership by purchasing out the Swiss parent firm, thereby establishing Computer Associates International, Inc. under his sole control.

1980s

Computer Associates went public in 1981 through an IPO, generating $3.2 million in capital and listing its shares on the NASDAQ under the ticker "CASI".

The company's first significant acquisition occurred in 1982 when it merged with Capex Corporation, resulting in a 50 percent increase in revenue. Both firms specialized in IBM mainframe software; however, while CA concentrated on IBM's DOS mainframe operating system, Capex brought expertise in IBM's OS mainframe operating system, complementing CA’s existing product lineup.

This Capex merger initiated a vigorous acquisition campaign focused on third-party mainframe software vendors.

By 1986, CA had shifted its headquarters to Garden City, occupying several buildings throughout Nassau County. That year, revenues reached $265 million with net income exceeding $30 million; estimated sales from personal computer software ranged between $60 million and $70 million.

The company's expansion accelerated dramatically in 1987 following its $800 million purchase of Uccel, a deal substantially larger than previous acquisitions. Formerly known as UCC and controlled by Haefner since 1976, Uccel underwent major restructuring after joining CA, including layoffs affecting nearly half of its 1,200 employees—reflecting CA’s typical integration strategy. Haefner emerged as CA’s largest single shareholder with approximately a 25 percent stake.

In that same year, CA transitioned its stock listing to the New York Stock Exchange using the symbol "CA". The following year saw the acquisition of Consco’s flagship software product.

By the end of the decade, CA had become only the second software company after Microsoft to exceed $1 billion in annual sales. Information Week placed Computer Associates ahead of Microsoft in its 1990 article titled "Software's Heavy Hitters."

1990s

At the start of the 1990s, Computer Associates encountered significant criticism alongside a sharp decline in its stock value, which fell by more than half in 1990. To counteract this downturn, the company pursued international expansion into regions including Japan, Canada, Africa, and Latin America. It also adjusted its software maintenance pricing structure and improved interoperability with vendors such as Hewlett-Packard (HP), Apple Computer, and Digital Equipment Corporation (DEC). Despite these initiatives, the recession in the early 1990s adversely affected CA’s performance, with its stock losing roughly 70 percent from its 1989 high by October 1991. At that point, the firm employed around 7,000 people and recorded sales near $1.4 billion.

In 1991, CA acquired Pansophic Systems. Following two and a half years of preparation, the company relocated its headquarters to a sprawling corporate campus in Islandia, New York by 1992, consolidating operations previously scattered across Nassau County. This transition positioned CA as Long Island’s second-largest private employer after Grumman Aerospace, aided by tax breaks and financial incentives from Suffolk County officials.

Growth continued through further acquisitions: in 1994, CA purchased the ASK Group, retaining the Ingres database system under various brand names. Legal disputes emerged in 1992 when client Electronic Data Systems (EDS) filed suit against CA for breach of contract and antitrust allegations; both parties ultimately reached a settlement in 1996.

Major acquisitions followed with the $1.78 billion purchase of Legent Corporation in 1995—the largest deal within the software sector at that time—and Cheyenne Software for $1.2 billion in 1996. In 1999, CA executed the then-largest software industry acquisition by acquiring Platinum Technology International for $3.5 billion.

In 1998, CA’s hostile bid to acquire consulting firm Computer Sciences Corporation (CSC) was unsuccessful and resulted in a bribery lawsuit involving founder and CEO Charles Wang.

By the close of the decade, CA had established dominance over the mainframe utility software market—a highly profitable yet less visible segment compared to PC software companies like Microsoft, Lotus Software, and WordPerfect Corporation. A 1996 Business Week feature captured this specialized focus with the headline "Computer Associates: Sexy? No. Profitable? You Bet."

In May 1998, Wang along with two associates received stock grants valued at $1.1 billion at that time. The following year, Wang secured a record-setting $670 million bonus from a vested stock option granted in 1995 amid earnings pressures caused by slowdowns in European markets and an Asian financial crisis. These large payouts sparked controversy and led CA to record a $675 million after-tax charge related to $1.1 billion in executive compensation.

Company culture

Computer Associates (CA) frequently faced criticism for emphasizing sales over customer service, developing a reputation for poor client relations and premium pricing. The sales team often approached customers with an adversarial attitude. Nevertheless, CA’s software was deeply embedded within corporate IT infrastructures, making it difficult for clients to switch vendors. This reliance generated consistent revenue streams that contributed to management’s sense of entitlement. Critics charged that CA tended to acquire software products only to place them into maintenance mode, thereby generating revenue without pursuing innovation. Despite such critiques, the company consistently outperformed its detractors.

The corporate culture at CA reflected founder Charles Wang’s immigrant background and education at Queens College, differing markedly from Silicon Valley’s typical environment. The sales force primarily consisted of individuals from New York’s outer boroughs and Long Island—known for their aggressive yet effective approach to business. Internally, CA was often viewed as a ruthless employer that conducted frequent mass layoffs following acquisitions while executives received substantial compensation packages. For instance, Applied Data Research and Cullinet underwent significant staff reductions shortly after being acquired.

Some industry commentators provided a more balanced assessment. Historian Martin Campbell-Kelly acknowledged CA’s ongoing development of key database products such as DATACOM/DB and IDMS as well as efforts to integrate its portfolio. Workforce reductions were sometimes interpreted as strategic measures to streamline underperforming divisions. Joseph A. Piscopo, founder of Pansophic Systems (which CA acquired), observed that while many acquisitions received minimal investment beyond maintenance, certain companies like Cheyenne Software benefited from focused internal development efforts.

This multifaceted culture—characterized by aggressive expansion, strained customer relations, and selective product investment—played a defining role in shaping CA’s long-term strategic direction and market standing.

Accounting Controversy

By the year 2000, Computer Associates had completed around 200 acquisitions. That same year, Sanjay Kumar took over as CEO, replacing Wang, who continued as chairman. In 2002, Wang fully exited the company, with Kumar stepping into the chairman position.

In 2000, shareholders filed a class-action lawsuit accusing CA of inflating revenue figures by more than $500 million during the fiscal years 1998 and 1999 to artificially boost its stock value. The following year, a proxy contest led by shareholder Wyly challenged CA’s board over concerns about management practices, especially relating to Sterling Software. Although Wyly attempted to gain control of the board, he was unsuccessful by 2002 and accepted a $10 million payment often viewed as greenmail.

By early 2002, investigations by the SEC and U.S. Attorney's Office into alleged accounting fraud at CA became public knowledge. Moody’s downgraded the company’s credit rating, which led to the cancellation of its debt refinancing plans. Additionally, the Department of Justice imposed restrictions on CA’s acquisition activities that year.

The SEC charged CA and former executives with securities fraud, asserting that from 1998 through 2000 the company extended accounting periods beyond quarter-end to prematurely record revenue and meet Wall Street expectations. This practice inflated revenues by approximately $3.3 billion across 363 contracts, benefiting executives who held substantial stock options.

Kumar stepped down as CEO and chairman in 2004 and soon thereafter exited the company. CA restated its earnings for 2000 and 2001 due to improper revenue recognition practices. To avoid criminal charges in what became known as the "35 day month" scandal, CA reached settlements with both the SEC and DOJ, paying $225 million in fines and agreeing to implement governance reforms.

Eight senior executives pled guilty to charges related to fraud or obstruction of justice; several received prison sentences. Kumar himself was sentenced in 2006 to 12 years imprisonment and fined $8 million for his involvement in the accounting misconduct. Following these developments, CA revamped its executive leadership and incurred over $500 million in costs related to investigations and penalties.

2000s

By 2001, Computer Associates ranked as the fourth-largest independent software firm worldwide, employing approximately 18,000 people. Its attempts to expand beyond mainframe software met with limited success.

In December 2003, CA established the India Technology Centre in Hyderabad. The following year, former IBM executive John Swainson was appointed CEO but encountered difficulties stemming from internal financial and accounting system problems.

The company unveiled its Enterprise IT Management (EITM) strategy aimed at integrating enterprise IT operations. By 2006, CA's workforce had decreased to around 15,000 employees. In January of that year, it rebranded from Computer Associates International, Inc. to simply CA, Inc., signaling a renewed focus on streamlining enterprise IT management; this rebranding coincided with founder Kumar’s guilty plea in legal proceedings.

Starting in May 2008, CA became part of the Nasdaq-100 index. On September 1, 2009, CEO Swainson announced his intention to retire at year-end. William E. McCracken succeeded him as chairman and CEO beginning January 2010.

2010s

In May 2010, CA underwent a rebranding initiative, adopting the name CA Technologies to more accurately reflect its broadened range of products.

Throughout that year, CA expanded its cloud computing capabilities by acquiring eight companies: 3Tera, Nimsoft, NetQoS, Oblicore, Cassatt, 4Base Technology, Arcot Systems, and Hyperformix. Additionally, it acquired Replay Solutions. In 2011, CA invested $330 million to acquire ITKO and subsequently purchased application deployment company Nolio for approximately $40 million, along with Layer7.

Although previously involved in consumer antivirus and internet security software, CA divested its antivirus division to Updata Partners in 2011, which then established Total Defense. Following this separation, CA concentrated its efforts on business-to-business solutions focused on mainframe and distributed IT infrastructure.

Michael P. Gregoire took over as CEO in January 2013. By June 2014, the company discreetly shifted its headquarters from Islandia, New York, to 520 Madison Avenue in Manhattan.

In 2015, CA completed four acquisitions: Rally Software for $480 million; Unifyalm; Gridtools, specializing in agile development; Idmlogic for identity management; and Xceedium.

Between 2016 and 2017, additional acquisitions included BlazeMeter for $90 million, Automic (enterprise automation), Veracode (application security), and Runscope (API testing and monitoring).

For the fiscal year ending March 31, 2018, CA Technologies reported revenues of $4.2 billion. Mainframe products remained the dominant revenue source at about $2.2 billion; enterprise solutions contributed roughly $1.75 billion; and services accounted for approximately $300 million. The company maintained a presence in over 40 countries with an employee base near 11,300.

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

Acquisition by Broadcom

On July 11, 2018, Broadcom Inc. revealed plans to acquire CA Technologies for $18.9 billion in cash. CA’s CEO Mike Gregoire commented that the merger "combines our software expertise with Broadcom's semiconductor industry leadership." The announcement caught some industry participants off guard due to the contrasting core businesses of the two firms. One analyst observed that while Broadcom could leverage cash flow from CA’s operations, the strategic intent was ambiguous. The Register described the transaction as the "Weirdest. Acquisition. Ever." The deal was finalized on November 5, 2018.

This acquisition represented a significant shift for CA Technologies—traditionally an acquirer—now becoming part of Broadcom, a company noted for substantial workforce reductions following acquisitions. After closing the deal, Broadcom implemented layoffs affecting former CA employees across locations including Silicon Valley, Plano (Texas), Islandia (New York), and Manhattan. Reports suggested approximately 40% of CA’s U.S.-based workforce—close to 2,000 staff members—were dismissed. Subsequently, CA’s large Islandia campus was vacated.

Corporate responsibility and recognition

During the mid-1990s, Computer Associates worked to improve its public image by establishing a dedicated public relations team and adopting more progressive human resources policies aimed at enhancing employee relations.

Sustainability

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

By 2017, CA achieved an A− rating from CDP for its environmental performance and transparency efforts. According to its corporate sustainability report published in 2018, the company had reduced its greenhouse gas emissions by more than 35% since 2006. That same year it received the Climate Leadership Award for Excellence in GHG Management and was listed among Barron’s 100 Most Sustainable Companies.

In February 2018, for the third consecutive year, CA was honored as one of the World’s Most Ethical Companies by the Ethisphere Institute.

Equality and diversity

Between 2015 and 2018, CA Technologies received recognition from Working Mother Magazine as one of the leading employers for multicultural women, also securing a spot among the 100 Best Companies from 2015 through 2017. In 2017, InHerSight awarded the company a 4.3 out of 5-star rating, placing it within the Top 10 IT firms for female professionals. Furthermore, Fatherly.com honored CA as one of the Best Workplaces for New Fathers in both 2015 and 2016.

In 2018, CA was distinguished as a top organization for executive women by NAFE and was included in the Bloomberg Gender-Equality Index (GEI). Marking its fourth year in a row, the Human Rights Campaign Foundation recognized CA as one of the Best Places to Work for LGBTQ+ Equality.

CA’s CEO, Mike Gregoire, has committed to diversity and inclusion by endorsing the CEO Action for Diversity and Inclusion pledge.

Work environments

From 2015 through 2018, CA consistently earned accolades from Computerworld as one of the premier workplaces within the IT sector. In 2017, it was featured on Forbes' list of America’s Best Employers and received the Technology Services Industry Association (TSIA) STAR Award for Leadership and Innovation.

In 2018, CA was acknowledged by Thomson Reuters as one of the World's Top 100 Technology companies and secured the NorthFace ScoreBoard Award from the Customer Relationship Management Institute (CRMI) for six consecutive years.

Acquisitions

Through a series of strategic acquisitions, CA broadened its software offerings across enterprise system monitoring, ID management, security solutions, and anti-virus technologies, thereby establishing a comprehensive presence in diverse market segments.

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