CA To Buy Rally Software For $480 Mln.

(RTTNews) - IT management software provider CA Technologies (CA) on Wednesday said it has agreed to buy Rally Software Development Corp (RALY) for $19.50 per share, or about $480 million, net of cash acquired.

The deal has been unanimously approved by both boards, and is expected to close in the second quarter of CA's fiscal 2016.

CA said the deal is a significant milestone in its strategy to help customers thrive in the application economy.

Based in Boulder, CO, Rally Software is a provider of Agile development software and services. The company, with 500 employees across four continents, had 2015 sales of $88 million.

"Rally is a leading provider of Agile development software and services, with offerings that complement and expand CA's strengths in the areas of DevOps and Management Cloud," said Mike Gregoire, chief executive officer, CA Technologies.

Rally works with some of the world's largest brands, and these customers depend on its cloud-based Agile development platform. According to CA, leading industry analysts firms like Forrester1 and IDC opine that the Agile methodology is a major trend in developing software.