US software company CA Technologies to buy Veracode for around $614 mn

US software company CA Technologies yesterday struck a deal to buy application security testing provider Veracode, for around $614 million.

The all-cash transaction is expected to close in the first quarter of fiscal year 2018, subject to closing conditions, including regulatory approvals.

Founded in 2006 by Chris Wysopal and Christien Rioux, former engineers from @stake, a Cambridge, Massachusetts-based security consulting firm, Veracode is an application security company that provides an automated cloud-based service for securing web, mobile and third-party enterprise applications.

The privately-held Burlington, Massachusetts-based company provides multiple security analysis technologies on a single platform, including static analysis, dynamic analysis, mobile application behavioural analysis and software composition analysis.

CA Technologies said that the acquisition of Veracode will make it a leader in the Secure DevOps market through the automation and scaling of application security testing to develop and deploy applications faster with fewer defects.

''With Veracode, CA Technologies bridges its Security business with its broad DevOps portfolio and adds to its growing SaaS business. Veracode extends CA's go-to-market strategy into midsize enterprise customers while CA accelerates Veracode's global reach into larger enterprise customers,'' CA Technologies added in the statement.

''Software is at the heart of every company's digital transformation. Therefore, it's increasingly important for them to integrate security at the start of their development processes, so they can respond to market opportunities in a secure manner,'' said Ayman Sayed, president and chief product officer at CA Technologies.

''This acquisition will unify CA's Security and DevOps portfolios with a SaaS-based platform that seamlessly integrates security into the software development process. Looking holistically at our portfolio, now with Veracode and Automic, we have accelerated the growth profile of our broad set of solutions,'' he added.

CA Technologies, formerly known as Computer Associates International, Inc. and CA, Inc., is one of the world's largest independent software company.

The New York-based company creates systems software that runs in mainframe, distributed computing, virtual machine and cloud computing environments.

It also provides anti-virus and Internet security commercial software programs for personal computers during its venture into the business-to-consumer

Its computer software products are used by a majority of the Fortune Global 500 companies, government organizations, educational institutions, and other companies in diverse industries worldwide.

CA Technologies holds more than 950 patents worldwide, and has more than 900 patent applications pending