Key Stats
Founded: 1976
Headquarters: New York, New York (final); Islandia, New York (1986–2014)
Founders: Charles B. Wang and Russell Artzt
Final CEO: Mike Gregoire (2013–2018)
Employees: ~11,300 (at acquisition)
Revenue: $4.2 billion (fiscal 2018)
Status: Acquired by Broadcom Inc. for $18.9 billion (November 2018)
CA Technologies, Inc. (formerly Computer Associates International, Inc. and CA, Inc.) was an American multinational enterprise software company that specialized in mainframe software, IT management, security, and infrastructure solutions. At its peak, CA was one of the largest independent software companies in the world, serving 95% of Fortune 500 companies with products that helped manage complex IT environments across mainframes, distributed systems, and cloud platforms.
Founded in 1976 by Charles Wang and Russell Artzt to develop software utilities for IBM mainframes, Computer Associates grew primarily through aggressive acquisitions, purchasing more than 60 companies over its first two decades. The company’s flagship products included Unicenter (systems management), Top Secret (security), and various database and automation tools acquired through purchases like Legent ($1.78 billion, 1995), Cheyenne Software ($1.2 billion, 1996), and Platinum Technology ($3.5 billion, 1999).
The company endured a major accounting scandal in the early 2000s that resulted in CEO Sanjay Kumar receiving a 12-year prison sentence for securities fraud related to a $2.2 billion revenue manipulation scheme known as the “35-day month.” After recovering under new leadership, CA Technologies continued expanding into DevOps, API management, and security through acquisitions including Rally Software ($480 million, 2015) and Veracode (2016). In November 2018, semiconductor giant Broadcom Inc. acquired CA Technologies for $18.9 billion in cash, integrating the software company into its infrastructure software division.
CA Technologies History
1976
Company Founded
Charles B. Wang and Russell Artzt establish Computer Associates International in New York as a joint venture with a Swiss software company. The company begins selling CA-SORT, a utility for sorting, merging, and copying data on IBM mainframes, marketed through telephone sales and funded by credit cards.
1980-1987
Expansion & IPO
Wang buys out the Swiss parent company, gaining full control. The company goes public on NASDAQ in 1981. CA introduces Unicenter, its flagship systems management software (1985). Through acquisitions of Capex Corporation (1982), Johnson Systems, UCCEL Corporation ($800 million, 1987), and others, CA becomes the leading provider of mainframe infrastructure software.
1989-1999
$1 Billion Club & Major Acquisitions
Computer Associates becomes the second software company (after Microsoft) to reach $1 billion in annual revenue (1989). The acquisition spree continues: Legent Corporation ($1.78 billion, 1995), Cheyenne Software ($1.2 billion, 1996), and Platinum Technology ($3.5 billion, 1999—then the largest software acquisition ever). By decade’s end, CA dominates mainframe utility software.
1998-2000
Peak & Leadership Transition
Charles Wang, Sanjay Kumar, and Russell Artzt receive stock grants worth approximately $1.1 billion (1998). A hostile takeover bid for Computer Sciences Corporation fails. Charles Wang resigns as CEO in 2000; Sanjay Kumar succeeds him. At its peak, CA has 18,000 employees and ranks as the fourth-largest independent software company.
2002-2006
Accounting Scandal
FBI investigation reveals massive accounting fraud—the “35-day month” practice of backdating contracts to inflate quarterly revenue by over $2 billion. CEO Sanjay Kumar resigns (April 2004), is indicted (September 2004), pleads guilty (April 2006), and is sentenced to 12 years in prison. CA pays $225 million in settlements. The company renames itself CA, Inc. (January 2006) and hires former IBM executive John Swainson as CEO.
2010-2016
Cloud & DevOps Pivot
Under CEO Bill McCracken (2009–2012) and then Mike Gregoire (2013–2018), the company rebrands as CA Technologies (2010) and pivots toward cloud computing, DevOps, and API management. Key acquisitions include 3Tera, Nimsoft, and Arcot (2010); Rally Software ($480 million, 2015); Automic, BlazeMeter, and Veracode (2016).
2018
Broadcom Acquisition
On July 11, 2018, Broadcom Inc. announces it will acquire CA Technologies for $18.9 billion in cash ($44.50 per share)—the largest sale of an enterprise software company at that time. The deal closes on November 5, 2018. CA becomes a wholly owned Broadcom subsidiary. Co-founder Charles Wang dies of lung cancer on October 21, 2018, shortly before the acquisition closes. Broadcom subsequently lays off approximately 40% of CA’s U.S. workforce.
Founders
Charles B. Wang (1944–2018)
Charles Wang (pronounced “Wong”) was born in Shanghai, China, and immigrated to the United States at age eight with his family. He earned a bachelor’s degree in mathematics from Queens College (1967) and began his career as a trainee programmer, learning the trade without formal computer science education.
At age 31, Wang co-founded Computer Associates in 1976, using credit cards to fund the startup. He grew CA into one of the world’s largest software companies through dozens of acquisitions and aggressive sales tactics. Wang was known for promoting from within—nearly all managers rose through the company ranks—and for family-oriented management, installing his brother Tony as president (1979–1992) and his wife Nancy Li as CTO (1998).
Wang was the highest-paid CEO in America for four consecutive years in the late 1990s, receiving stock grants worth approximately $700 million in 1998 alone. He resigned as CEO in 2000 and chairman in 2002 amid shareholder lawsuits. Outside business, Wang owned the New York Islanders hockey team (2000–2016), donated over $100 million to philanthropy, and championed the failed Lighthouse Project development at Nassau Coliseum. He died of lung cancer on October 21, 2018.
Russell Artzt
Russell Artzt met Charles Wang while both worked at Standard Data Corporation in New York, where Artzt handled programming. When Wang decided to launch Computer Associates in 1976, Artzt joined as co-founder and was responsible for developing and programming the early software products, including CA-SORT.
Artzt served in various technical and executive roles throughout CA’s history. He was named in the 1998 stock grant alongside Wang and Kumar, receiving a substantial portion of the approximately $1.1 billion in combined compensation. Like Wang, Artzt was also named in shareholder class-action lawsuits related to allegedly improper revenue reporting, though these were settled or dismissed without finding liability.
While Wang served as the public face and sales-driven leader of Computer Associates, Artzt operated more behind the scenes as the technical co-founder who helped build the company’s initial product portfolio and technical foundation.
Major Acquisitions
CA Technologies grew primarily through acquisitions, purchasing over 60 companies during its first two decades. The company was known for aggressive cost-cutting following acquisitions, typically laying off acquired companies’ sales and management teams.
- Capex Corporation (1982, $22M) – Job scheduling and programmer productivity tools; nearly doubled CA’s size
- UCCEL Corporation (1987, $800M) – Brought Sanjay Kumar to CA
- Cullinet Software (1989) – IDMS database management system
- Legent Corporation (1995, $1.78B) – Largest software acquisition at the time; mainframe and network management
- Cheyenne Software (1996, $1.2B) – Storage management and backup solutions
- Platinum Technology International (1999, $3.5B) – Then the largest software acquisition ever; database tools, ERwin data modeling
- Wily Technology (2006) – Application performance management
- Arcot Systems (2010) – Authentication and fraud prevention
- 3Tera, Nimsoft (2010) – Cloud computing capabilities
- Rally Software (2015, $480M) – Agile project management
- Automic (2016) – Business automation
- Veracode (2016) – Application security testing
- BlazeMeter (2016) – Continuous testing platform
CA Technologies Revenue
CA Technologies generated approximately $4.2 billion in annual revenue at the time of its acquisition by Broadcom in 2018. Mainframe products remained the company’s largest revenue source, contributing about $2.2 billion annually, while enterprise software solutions generated approximately $1.75 billion and services about $300 million.
CA Technologies Competitors
CA Technologies competed primarily in mainframe software, IT management, and enterprise security markets against both large technology conglomerates and specialized software vendors.
| Company | Headquarters | Focus Areas |
|---|---|---|
| IBM | Armonk, NY | Mainframe hardware/software, enterprise IT, cloud |
| BMC Software | Houston, TX | Mainframe management, IT service management, DevOps |
| Micro Focus (OpenText) | UK (now Canada) | Mainframe modernization, COBOL, application development |
| Compuware (Thoma Bravo) | Detroit, MI | Mainframe DevOps, application performance |
| Rocket Software | Waltham, MA | Mainframe tools, application modernization |
| ServiceNow | Santa Clara, CA | IT service management, workflow automation |
| Splunk | San Francisco, CA | IT operations analytics, security |
| HPE (Hewlett Packard Enterprise) | Houston, TX | Enterprise IT infrastructure, software |
| Dynatrace | Waltham, MA | Application performance monitoring, observability |
| Microsoft | Redmond, WA | Enterprise software, cloud (Azure), security |
FAQs
What happened to CA Technologies?
Broadcom Inc., a semiconductor manufacturer, acquired CA Technologies for $18.9 billion in cash in November 2018. The deal represented a premium of approximately 20% over CA’s stock price and was the largest sale of an enterprise software company at that time. Following the acquisition, CA became a wholly owned Broadcom subsidiary and was integrated into Broadcom’s infrastructure software division. Broadcom laid off approximately 40% of CA’s U.S. workforce after the acquisition, and the company’s former headquarters campus in Islandia, New York was demolished in 2024.
What was the CA Technologies accounting scandal?
In the early 2000s, federal investigators discovered that CA executives had engaged in a systematic accounting fraud known as the “35-day month.” The scheme involved keeping the company’s books open past quarter-ends to record revenue from contracts that hadn’t been signed, making it appear CA had met its quarterly projections. Over $2 billion in revenue was manipulated between 1999 and 2000. CEO Sanjay Kumar resigned in April 2004, was indicted in September 2004, pleaded guilty to securities fraud and obstruction of justice in April 2006, and was sentenced to 12 years in federal prison. CA paid $225 million to settle with the DOJ and SEC.
Why did Broadcom buy CA Technologies?
Broadcom acquired CA Technologies to diversify beyond semiconductors into infrastructure software. CA’s mainframe software business provided stable, recurring revenue—mainframes process approximately 30 billion transactions and $7 trillion in credit card payments daily. CEO Hock Tan described the acquisition as “an important building block” in creating “one of the world’s leading infrastructure technology companies.” The deal came after Broadcom’s failed $117 billion hostile takeover attempt of Qualcomm was blocked by the Trump administration on national security grounds.
What products did CA Technologies make?
CA Technologies’ product portfolio spanned mainframe software, IT management, and security. Key products included: Unicenter (systems management, introduced 1985), Top Secret (mainframe security), CA-SORT (data utilities), IDMS (database, from Cullinet), ERwin (data modeling, from Platinum Technology), Wily (application performance management), Rally (agile project management), Veracode (application security testing), and Automic (business automation). At its peak, CA sold over 1,200 different products, most designed for enterprise rather than consumer use.
Was Charles Wang a billionaire?
Yes. Charles Wang became a billionaire through his ownership stake and compensation as CEO of Computer Associates. In 1998, Wang received stock grants worth approximately $700 million when CA’s shares hit predetermined targets—making him the highest-paid CEO in America for four consecutive years. Combined with earlier compensation and his founding stake, Wang’s net worth at his peak exceeded $1 billion. He later bought the New York Islanders NHL team (2000–2016) and donated over $100 million to charitable causes through the Charles B. Wang Foundation before his death in 2018.
