CA Technologies has agreed to acquire an Austrian business automation software company for about $637 million, the company announced Thursday.
CA is based in Manhattan, but the maker of software for the business market formerly had its headquarters in Islandia. More than 1,000 employees — almost 10 percent of the workforce — remain there, a spokeswoman said.
The deal provides CA, whose revenue has declined in its last three fiscal years, incremental sales, a wider presence in Europe and a stronger position in the market for automating updates to business software.
CA said its board of directors and that of the acquired company, Vienna-based Automic Holding GmbH, had unanimously approved the deal.
The $637 million purchase price is the net figure after deducting cash and cash equivalents held by Automic, CA said. Automic has about 600 employees in Europe, North America and Asia.
Ayman Sayed, CA’s president and chief product officer, said the deal expands the company’s geographic and technological reach.
“Strategically, it accelerates our position with its cloud-enabled platform. Operationally, it expands our reach across Europe,” he said.
“With CA Technologies, we will help organizations further propel their intelligent automation capabilities to the next level,” Todd DeLaughter, chief executive of Automic, said in a statement.
Assuming the deal closes in January, CA said, it would add a half percentage point to fiscal 2017 revenue.
CA shares fell 4.9 percent to close Thursday at $30.41 on the Nasdaq Stock Market. They are up about 6.5 percent year to date.