Broadcom Inc. · NASDAQ:AVGO
Broadcom — Merger or Acquisition (July 2018)
12 slides from Broadcom's merger presentation, Jul 12, 2018
Slide 1: Broadcom to Acquire CA Technologies
Broadcom to Acquire CA Technologies July 11, 2018 Exhibit 99.2
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concernin
Slide 3: Transaction Overview
Transaction Overview Purchase Price $44.50 per share in cash ~$18.9 billion equity value Sources of Financing $18.0 billion of fully committed term loans and cash on hand Anticipate pro forma net leverage at closing of < 2.1x Approval Process Subject to customary closing conditions, including the ap
Slide 4: Building One of the World's Leading Infrastructure Technology Companies
Continues Broadcom’s focus on acquiring established mission critical technology businesses Expands Broadcom’s TAM to include growing and fragmented infrastructure software market Provides Broadcom with significant recurring revenue Expected to drive Broadcom’s long-term Adjusted EBITDA margins above
Slide 5: CA is a Global Leader in Mainframe & Enterprise Software
CA is a Global Leader in Mainframe & Enterprise Software Databases Intelligence Application Development Agile Planning & Delivery Project & Portfolio Management Automation DevOps IT Operations Management Identity & Access Management Application & Data Security Mainframe Solutions $2.2B Revenue(1) 51
Slide 6: Mainframe is mission essential to the application economy
Mainframe is mission essential to the application economy Five-9s (99.999%) availability for billions of interactions per day 30 billion transactions processed per day ~7 trillion credit card payments annually Mainframe Remains the Backbone for Mission Critical Applications Mainframe remains very st
Slide 7: CA Delivers a Suite of Mainframe Solutions...
CA Delivers a Suite of Mainframe Solutions... CA CA CA Others Others Others Source: Gartner Research Software database (May 2018); IDC Semiannual Software Tracker, (Apr 2018). Mainframe Databases CY16 TAM: ~$2.4B ITOM Mainframe Tools CY16 TAM: ~$4.3B App Dev & Management Tools CY16 TAM: ~$1.6B
Slide 8: ...and a Portfolio of Leading Enterprise Solutions
…and a Portfolio of Leading Enterprise Solutions DevOps API Management APM Continuous Delivery & Release Automation Static Application Security Testing Privileged Management IDaaS, Single Sign-On Access Management / Federation Adaptive Authentication Identity Provisioning Access Governance Agile Pro
Slide 9: Attractive Financial Model
Non-GAAP Current Long-Term Model FY2019E(1) Projected Long-Term Model Annual Growth Rate 5% ~1% 3%+ Adjusted EBITDA Margin ~48% ~38% ~55% Expected to Drive Broadcom’s Long-Term Adjusted EBITDA Margins Above 55% and be Immediately Accretive to Broadcom’s Non-GAAP EPS 8 Attractive Financial Model Comm
Slide 10: Enables Broadcom to Sustain Double-Digit Earnings Growth
Enables Broadcom to Sustain Double-Digit Earnings Growth 9 Historical Semiconductor Consolidation Future Technology Consolidation $60B(1) $65B(2) >$200B(3) TAM: 2013 Current (LTM) Additional Mission Critical Technology Solutions TAM (Market Share) (Market Share) EPS(4) $2.89 $18.69 2019 & Beyond > 1
Slide 11: Building One of the World's Leading Infrastructure Technology Companies
Building One of the World’s Leading Infrastructure Technology Companies 10 Note Broadcom financials include contributions from Brocade beginning November 17, 2017. Non-GAAP data excludes, where applicable, stock-based compensation, amortization of acquisition-related intangible assets, restructuring
Slide 12: Broadcom
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