CA Technologies buying Rally Software for $480 million

It's a busy day in the tech world when it comes to M&A chatter.

CA Technologies is stocking up on agile software products with the purchase of Rally Software.

Enterprise software spend to reach $620 billion in 2015: Forrester

As part of its 2015 tech market outlook, Forrester says most of what CIOs spend on technology will go toward enterprise process apps such as ERP and CRM.

Read More

Under the terms of the deal, CA Tech has agreed to pay $19.50 per share, translating to approximately $480 million, for Rally.

Founded in 2001, Colorado-based Rally Software filed a $70 million IPO in 2013. Now with more than 500 employees across four continents, Rally produced $88 million in sales in fiscal 2015.

But now it looks like all roads are clear for Rally and CA Tech to consolidate as the transaction has been unanimously approved by both Boards of Directors.

CA Technologies CEO Mike Gregoire posited in prepared remarks that Rally's Agile development software and services "complement and expand CA's strengths in the areas of DevOps and Management Cloud."

"Every developer dreams of creating truly transformative software that responds to a business challenge extremely quickly," Gregoire wrote. "Joining forces with Rally makes this dream a possibility for millions of developers worldwide, and in turn opens up the possibility of a whole new range of experiences driven by software."

The merger is expected go through during the second quarter of CA's fiscal 2016.

It's a busy day in the tech world when it comes to M&A chatter.

Also just after the closing bell on Wednesday, Palo Alto Networks announced it is acquiring cybersecurity company CirroSecure.

Earlier in the day, reports circulated that chip maker Broadcom is in serious talks to be picked up by Avago Technolgoies, which specializes in semiconductors designed for enterprise and industrial use cases, including data networking, telecommunications, factory automation, and alternative energy systems, among others.