Enterprise software firm CA Technologies (NASDAQ:CA) announced on Monday that it has signed a definitive agreement to acquire Veracode, a provider application security testing solutions, for roughly $614 in cash.
Burlington, Mass.-based Veracode offers a cloud-based application security testing service that helps companies secure web, mobile and third-party applications. Veracode’s platform offers centralized policies and KPIs which to help reduce risk and measure progress across business units and development teams, including third-party suppliers, outsourcers and open source developers.
The company has raised more than $134 million in funding, including a $40 million investment in late 2014.
“The combination of CA’s portfolio with privately-held Veracode will establish CA Technologies as a leader in the Secure DevOps market through the automation and scaling of application security testing (AST) to develop and deploy applications faster with fewer defects,” CA said in an announcement. “With Veracode, CA Technologies bridges its Security business with its broad DevOps portfolio and adds to its growing SaaS business.”
“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.”
“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 of 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.”
The transaction is expected to close in the first quarter of fiscal year 2018.
Founded in 2006, Veracode has offices in Burlington, MA and London and has more than 500 employees globally.
The application security space has been hot, and the acquisition of Veracode follows other notable acquisitions in the space. In November 2016, Synopsys, a company that provides tools and services for designing chips and electronic systems, announced that it would acquire Cigital, a provider of software security testing solutions, along with Cigital spin-off Codiscope, which also provides security tools. Coverity, another application security provider, was also acquired by Synopsys for approximately $375 million in February 2014, while Cenzic was acquired by Trustwave in March 2014 for an undisclosed sum. Fortify, a pioneer in the software security space, was acquired by HP in 2010.