Software International

CA Technologies, Inc.

Company type	Public
Industry	Enterprise software
Founded	1976 (1976)
Founder	Charles B. Wang
Defunct	2018 (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 president)
Products	Systems software for IBM mainframes, distributed computing, virtual machines, cloud platforms
Number of employees	Approximately 7,000 (early 1990s)
Parent	Broadcom Inc.

CA Technologies, Inc., previously known as Computer Associates International, Inc. and CA, Inc., was a prominent American multinational corporation specializing in enterprise software development and publishing from 1976 until 2018. Over time, CA expanded to rank among the largest independent software firms worldwide, at one stage holding the second position. Its product portfolio included systems software designed for IBM mainframes, distributed computing environments, virtual machines, and cloud platforms.

The company was primarily established by Charles B. Wang and experienced swift expansion largely through acquiring a multitude of smaller software companies within the IBM mainframe domain. CA gained a reputation for significant workforce reductions following acquisitions and often emphasized maximizing cash flow rather than investing in product innovation. The firm faced frequent customer dissatisfaction due to subpar technical support and a challenging corporate atmosphere. In the early 2000s, CA was embroiled in a substantial accounting scandal that led to the incarceration of several top executives. Nonetheless, by the 2010s, it garnered accolades for corporate responsibility from various industry bodies.

With origins tracing back to both Switzerland (Zurich and Geneva) and the United States (New York City), CA maintained its headquarters on Long Island for most of its existence—initially operating out of Jericho and Garden City, then Islandia for about twenty years—before moving to Manhattan in 2014. In 2018, semiconductor producer Broadcom Inc. acquired CA in a transaction valued close to $19 billion.

Origins

Computer Associates International emerged from the combination of a Swiss software enterprise and an American data services company.

Samuel W. Goodner, a Texan employed by Sam Wyly’s University Computing Company (UCC), was assigned to manage UCC’s acquisition of Automation Center A.G., a Swiss firm founded by Walter Haefner. By 1970, confronted with financial difficulties at UCC and inspired by Haefner’s leadership style, Goodner departed to establish Computer Associates A.G. in Zurich, concentrating on developing software products.

Following IBM’s 1969 policy change that separated hardware sales from software offerings—thereby opening up competition within the mainframe software market—Goodner sought to create products tailored for IBM mainframes. Despite limited funding, the startup secured Hoffmann-La Roche as a client with its high-performance sorting program, CA-SORT, introduced in 1971 as an alternative to IBM’s sorting utilities on System/360 and System/370 systems. To extend its reach beyond Switzerland, Computer Associates formed a holding company and entered into distribution agreements across Europe, eventually acquiring some distributors. By 1971, the company had relocated its headquarters to Geneva and was renamed Computer Associates International SA. In mid-1974, CA-SORT made its debut in the U.S. market through Pansophic Systems under the brand name Pansort. By this period, the firm was operating as Computer Associates International Ltd.

Concurrently, New York-based Standard Data Corporation, established in 1959 at 1540 Broadway, primarily delivered electronic data processing services. In 1973, it launched SYMBUG, a symbolic debugger designed for COBOL running on IBM’s VM/370 platform, followed by additional products for VM/CMS environments. Standard Data created a Software Products Division headed by Vice President Charles B. Wang, who also focused on capitalizing on opportunities within the IBM mainframe software sector following IBM’s unbundling decision.

In January 1976, Standard Data secured U.S. rights to CA-SORT from Pansophic Systems and reinstated the original product name. The company also acquired rights to EARL (Easy Access Report Language), a report generation software package.

1970s

In October 1976, the merger of Computer Associates International Ltd and the Software Products Division of Standard Data Corporation resulted in the formation of Computer Associates, Inc., with Charles Wang appointed as president. The newly established firm marketed CA-SORT throughout the Americas, while the European branch managed certain Standard Data offerings such as SYMBUG. Its inaugural U.S. office was located at 655 Madison Avenue in Manhattan. Despite this merger, Standard Data Corporation continued operating independently, providing computer services well into the 2010s.

This 1976 formation represents the inception of the renowned Computer Associates company. At its outset, the enterprise consisted of four employees, including co-founder Russell Artzt, who had collaborated with Wang at Standard Data and contributed to early software development.

By September 1977, the U.S. entity was conducting business as Trans-American Computer Associates, Inc.; for instance, CA-SORT 77 was copyrighted by Computer Associates International Ltd, whereas trademarks such as DYNAM/D—a disk utility designed for IBM mainframes running DOS variants—were owned by Trans-American Computer Associates, reflecting development rooted in the United States.

In 1979, the company’s American offices moved to Long Island, specifically to 125 Jericho Turnpike in Jericho, New York.

By 1980, Computer Associates International had expanded to approximately 300 employees worldwide and offered a suite of 12 products to nearly 9,000 client locations, with the U.S. market constituting its primary customer base. That same year, Wang secured full ownership by purchasing out the Swiss parent company and establishing Computer Associates International, Inc. under his sole control.

1980s

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

The company's first significant acquisition occurred in 1982 with the merger of Capex Corporation, which increased revenues by half. While CA specialized in IBM DOS mainframe software, Capex was well-established within the IBM OS mainframe segment, thereby complementing CA’s existing product range.

This acquisition inaugurated an assertive growth strategy centered on acquiring third-party mainframe software providers.

By 1986, CA had shifted its headquarters to Garden City, New York, expanding across multiple offices within Nassau County. That year saw revenues climb to $265 million with net income exceeding $30 million; estimated revenue from PC software ranged between $60 and $70 million.

In 1987, CA undertook a major expansion by acquiring Uccel for $800 million—the largest transaction in its history at that point. Following this acquisition, CA reduced Uccel’s workforce by nearly fifty percent, a cost-cutting approach typical for the firm. Charles Wang emerged as the largest shareholder post-merger, holding roughly a quarter of the company’s stock.

During that same year, CA transitioned its stock listing to the New York Stock Exchange under the symbol "CA". In 1988, it further expanded by acquiring the primary software product of Consco.

By the close of the decade, CA had become only the second software company after Microsoft to exceed $1 billion in annual sales. Additionally, Information Week ranked CA above Microsoft in its 1990 "Software's Heavy Hitters" report.

1990s

At the start of the 1990s, Computer Associates encountered significant criticism alongside a stock value drop exceeding 50% in 1990. In response, the company broadened its reach into international markets such as Japan, Canada, Africa, and Latin America, revised its software maintenance fee structure, and improved interoperability with partners including Hewlett-Packard, Apple Computer, and Digital Equipment Corporation. The recession of the early 1990s further affected CA’s performance, with its stock price falling roughly 70% by October 1991 compared to its 1989 high. During this period, CA’s workforce numbered about 7,000 employees, generating sales near $1.4 billion.

In 1991, CA acquired Pansophic Systems. Following more than two years of preparation, the company moved its headquarters in 1992 to an expansive corporate campus in Islandia, New York, centralizing its Nassau County operations. This relocation made CA the second-largest private employer on Long Island, benefiting from substantial tax incentives and construction financing assistance provided by Suffolk County authorities.

The company pursued growth through acquisitions such as the purchase of the ASK Group in 1994, maintaining the availability of the Ingres database management system under multiple brand names. In 1992, Electronic Data Systems (EDS), a CA client, initiated a lawsuit alleging breach of contract and antitrust violations; this legal matter was resolved by 1996.

CA completed several significant acquisitions within the software industry: it acquired Legent Corporation for $1.78 billion in 1995—then the largest software acquisition ever—and followed with the $1.2 billion purchase of Cheyenne Software in 1996. In 1999, CA finalized what was at that time the software sector’s largest acquisition by acquiring Platinum Technology International for $3.5 billion.

An attempted hostile takeover of Computer Sciences Corporation (CSC) in 1998 failed and resulted in bribery allegations against CA’s founder and CEO, Charles Wang. By the close of the decade, CA held a dominant position in the mainframe utility software market—a highly lucrative but less publicly visible segment compared to PC-focused companies like Microsoft and Lotus Software. A Business Week feature from 1996 emphasized CA’s robust profitability despite limited public recognition.

In May 1998, stock awards totaling $1.1 billion were granted to Wang and two other executives. The following year, Wang received an unprecedented $670 million bonus from a vested stock option issued in 1995 amid declining European markets and an Asian economic downturn that affected CA’s financial results and share price. These compensation packages became controversial as the company recorded a $675 million after-tax expense related to $1.1 billion in payments to senior executives.

Company culture

Computer Associates (CA) frequently faced criticism for emphasizing sales over customer service, leading to a reputation for steep pricing and subpar support. The sales team often regarded clients as adversaries. Despite CA’s extensive presence within corporate IT environments, it was often cited as one of the most disliked software vendors among its customers. Critics accused CA of relegating acquired products to maintenance mode primarily to maximize revenue streams, making their costly software challenging for clients to replace. This approach ensured consistent income but generated customer dissatisfaction and perceptions of executive arrogance.

The company's expansion via acquisitions contributed to its image as a "graveyard" for otherwise viable software; nevertheless, CA consistently outlasted its critics. The internal culture mirrored founder Charles Wang’s background—an immigrant without elite educational ties—rejecting Silicon Valley conventions and favoring a salesforce predominantly recruited from New York’s outer boroughs and Long Island. This group was characterized by aggressiveness, intelligence, and steady profitability.

Within the organization, CA was known as a stringent employer notorious for sudden layoffs frequently following acquisitions—for instance at Applied Data Research and Cullinet—where hundreds were dismissed abruptly. Such mass terminations raised concerns among partners like Sterling Software’s Sam Wyly, who pointed to cultural incompatibilities despite shareholder-driven merger objectives.

However, some industry observers presented a more balanced perspective. Historian Martin Campbell-Kelly acknowledged CA’s ongoing enhancement of critical database products such as DATACOM/DB and IDMS and noted its efforts to streamline underperforming units through workforce reductions. Likewise, Joseph A. Piscopo, founder of Pansophic Systems (acquired in 1991), observed that although many acquisitions were downsized to minimal maintenance teams, CA occasionally invested internally in product development—as demonstrated by Cheyenne Software.

Accounting Controversy

By the year 2000, Computer Associates had completed nearly 200 acquisitions. That same year, Sanjay Kumar took over the role of CEO from Wang, who continued as chairman. In 2002, Wang fully exited the company, with Kumar assuming both CEO and chairman positions.

In 2000, shareholders filed a class-action suit accusing CA of inflating its revenue figures by more than $500 million during fiscal years 1998 and 1999 to boost its stock valuation. The following year, investor Sam Wyly initiated a proxy contest targeting the board's management practices, particularly concerning his acquisition of Sterling Software. Although Wyly aimed to gain control of the board, he was unsuccessful and departed in 2002 after receiving a $10 million payment, which some interpreted as greenmail.

By early 2002, investigations into CA’s accounting methods by the Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office became publicly known. Moody’s downgraded CA’s credit rating, leading to the abandonment of a planned debt refinancing. Additionally, the Department of Justice imposed restrictions on CA’s ability to make acquisitions that year.

The SEC charged CA and several former executives with securities fraud, alleging that between 1998 and 2000 the company prematurely recorded revenue from contracts signed after quarter-end to meet Wall Street expectations. This improper revenue recognition involved $3.3 billion across 363 contracts. Executives held substantial stock options, creating incentives to overstate financial results.

Kumar stepped down as CEO and chairman in 2004 and left the company entirely two months later. The company restated its earnings for 2000 and 2001 due to these accounting irregularities. In settlements with the SEC and DOJ, CA agreed to pay $225 million in penalties and committed to improving corporate governance and financial controls.

Eight executives pleaded guilty to charges including fraud and obstruction; several received prison terms. Kumar was notably sentenced in 2006 to twelve years imprisonment and fined $8 million for his involvement in the "35-day month" accounting manipulation. Following these developments, CA restructured its senior leadership and incurred investigation costs and fines exceeding $500 million.

2000s

By 2001, Computer Associates was ranked as the fourth-largest independent software vendor globally, employing approximately 18,000 people. Its attempts to expand beyond its core mainframe market met with limited success.

In December 2003, CA launched its India Technology Centre located in Hyderabad. The following year, John Swainson, a former IBM executive, was named CEO. Swainson sought to rejuvenate the company but encountered significant challenges stemming from internal finance and accounting system problems.

During this timeframe, CA introduced its Enterprise IT Management (EITM) strategy aimed at integrating enterprise IT management solutions. By 2006, the workforce had been reduced to roughly 15,000 employees.

In January 2006, the company shortened its name from Computer Associates International, Inc. to CA, Inc., reflecting a strategic emphasis on streamlining enterprise IT management; this rebranding occurred shortly before founder Kumar entered a guilty plea on multiple charges.

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

On September 1, 2009, CEO Swainson announced his intention to retire at year-end. William E. McCracken took over as chairman and CEO in January 2010.

2010s

In May 2010, the organization underwent another rebranding, adopting the name CA Technologies to better represent its broadened technology portfolio.

During that year, CA expanded its cloud computing expertise through the acquisition of eight firms, including 3Tera, Nimsoft, NetQoS, Oblicore, Cassatt, 4Base Technology, Arcot Systems, and Hyperformix. Additionally, it acquired Replay Solutions and subsequently ITKO in 2011 for $330 million. In 2013, CA further enhanced its application deployment capabilities by purchasing Nolio for approximately $40 million, along with acquiring Layer7.

Originally known for consumer antivirus and internet security products, CA exited this market segment in 2011 by selling it to Updata Partners, which then established Total Defense. Following this divestiture, the company concentrated its efforts on business-focused mainframe and distributed IT infrastructure software.

Michael P. Gregoire took on the role of CEO in January 2013. By June 2014, CA discreetly shifted its headquarters from Islandia, New York to a new location at 520 Madison Avenue in Manhattan.

In 2015, CA completed four acquisitions including a $480 million purchase of Rally Software, along with Unifyalm, Gridtools, Idmlogic, and Xceedium.

The company's acquisition strategy persisted with Blazemeter in 2016 and continued in 2017 with Automic, Veracode, and Runscope.

For the fiscal year ending March 31, 2018, CA Technologies reported revenues totaling $4.2 billion. Mainframe solutions remained the primary revenue driver at around $2.2 billion; enterprise software contributed roughly $1.75 billion while services accounted for about $300 million. The firm maintained operations in over 40 countries and employed close to 11,300 personnel.

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

Acquisition by Broadcom

On July 11, 2018, Broadcom Inc. announced plans to acquire CA Technologies for $18.9 billion in cash. Mike Gregoire commented that this merger combined CA’s software expertise with Broadcom’s semiconductor industry leadership. The deal caught some industry observers off guard due to the companies’ distinct core sectors. One analyst remarked that while Broadcom could leverage cash flow from CA’s business operations, the strategic justification was ambiguous. The Register described it as the "Weirdest. Acquisition. Ever." The transaction finalized on November 5, 2018.

This acquisition represented a shift for CA Technologies, which had historically been the acquiring party. Broadcom—known for aggressive post-merger cost reductions—swiftly implemented layoffs affecting former CA staff across Silicon Valley, Plano (Texas), Islandia (New York), and Manhattan. Reports suggested nearly 40% of CA’s U.S.-based workforce—approximately 2,000 employees—were terminated. Following these cuts, the extensive CA campus in Islandia was vacated.

Corporate responsibility and recognition

During the mid-1990s, Computer Associates sought to improve its public image by establishing a dedicated public relations team and introducing more employee-centric human resources practices.

Sustainability

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

In 2017, CA received an A− grade from CDP for its environmental transparency and performance. Its sustainability report for 2018 noted a reduction exceeding 35% in greenhouse gas emissions since 2006. That same year, CA was honored with the Climate Leadership Award for Excellence in GHG Management and included in Barron’s list of the 100 Most Sustainable Companies.

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

Equality and diversity

Between 2015 and 2018, CA Technologies earned recognition from Working Mother Magazine as a leading employer for multicultural women and was listed among the 100 Best Companies from 2015 through 2017. In 2017, InHerSight awarded the company a 4.3 out of 5-star rating, ranking it within the Top 10 IT firms for women. Furthermore, Fatherly.com acknowledged CA as one of the Best Workplaces for New Fathers in both 2015 and 2016.

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

CA’s CEO, Mike Gregoire, is a committed signer of the CEO Action for Diversity and Inclusion pledge.

Work environments

From 2015 through 2018, Computerworld consistently ranked CA among the Best Places to Work in IT. The company also appeared on Forbes’ list of America’s Best Employers in 2017 and was honored with a STAR Award for Leadership and Innovation by the Technology Services Industry Association (TSIA).

In 2018, CA was recognized as one of Thomson Reuters’ World’s Top 100 Technology companies and received the NorthFace ScoreBoard Award from the Customer Relationship Management Institute (CRMI) for six years in a row.

Acquisitions

CA Technologies broadened its software offerings through multiple acquisitions spanning areas such as enterprise system monitoring, ID management, cybersecurity, and anti-virus solutions. This acquisition-driven strategy significantly contributed to its market growth and competitive positioning.

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