CA Technologies announced its deal to acquire Veracode for approximately $614 million in cash.
CA aims to combine its portfolio with Veracode to 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.
The acquisition of Veracode will enable CA Technologies to grow SaaS business and bridges its security business with its DevOps portfolio. This acquisition will unify CA’s Security and DevOps portfolios with a SaaS-based platform that integrates security into the software development process.
In addition, Veracode extends CA’s go-to-market strategy into midsize enterprise customers.
By 2019, more than 50 percent of enterprise DevOps initiatives will have incorporated application security testing for custom code, up from less than 10 percent in 2016.
“Now with Veracode and Automic, we have accelerated the growth profile of our broad set of solutions. We now expect that the size of our growing solutions within our Enterprise Solutions portfolio will eclipse the more mature part of the Enterprise Solutions portfolio in FY19,” said Ayman Sayed, president and chief product officer, CA Technologies.
The ability to deliver Identity and Access Management, DevOps tools and automation capabilities with SaaS-based application security, allows CA to offer enterprises of all sizes a faster time-to-value from their software investments.
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.”
Bob Brennan, CEO of Veracode, said the technology company provides the security for web and mobile applications to over 1400 small and large enterprise customers. Founded in 2006, Veracode has offices in Burlington, MA and London and has over 500 employees worldwide.