CA Technologies has announced it has signed a definitive agreement to acquire Veracode for approximately $614 million (£503 million) in cash. The transaction is expected to close in the first quarter of fiscal year 2018.
Veracode specialises in the automation and scaling of application security testing, to develop and deploy applications faster with fewer defects.
In combination with CA's security portfolio, the merger is expected to establish CA Technologies as a leader in the secure devops market. While Veracode has a number of mid-size enterprise customers, CA will aim to extend Veracode‘s reach with larger customers.
As security testing is growing, AST solutions adapt to new development methodologies and increased application complexity. Increased deployment of web and cloud-based business applications has further propelled the market growth.
According to data from the National Institute of Standards and Technology, “it's 30x more expensive to fix a vulnerability during post-production than during the design, requirement identification and architecture stage.”
CA will be hoping that the acquisition of Veracode will allow it to offer enterprises of all sizes an even faster time-to-value for their software investments by shifting security development earlier into the application development process.
Ayman Sayed, president and chief product officer, CA Technologies said, “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.” .
“We provide over 1400 small and large enterprise customers the security they need to confidently innovate with the web and mobile applications they build, buy and assemble, as well as the components they integrate into their environments,” said Bob Brennan, CEO at Veracode. “By joining forces with CA Technologies, we will continue to better address growing security concerns, and enable them to accelerate delivery of secure software applications that can create new business value.”