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CA Technologies, a company focused on digital transformation of businesses, yesterday announced that it will acquire Veracode, a Burlington, Mass.-based provider of application security solutions, for $614 million in cash. The news comes around two years after Veracode filed confidentially for an IPO, but it never followed through.

Why CA wants Veracode: There are two basic reasons for digital security breaches. One is the loss of credentials, and the other is defects in software. Veracode focuses on the latter, having scanned over 2 trillion lines of code for hundreds of applications.

Why Veracode wants CA: In a word, distribution. Veracode will now have access to a lot of large companies that it otherwise would have expended major resources to land as clients.

What happened to the IPO? Veracode CEO Bob Brennan says that the company did plan to go public back in 2015, but held off due to a public market swoon for enterprise software plus the need for some senior executive changes.

Who cashes out? Veracode had raised over $110 million in VC funding. Backers included Wellington Management, .406 Ventures, Accomplice, Cross Creek Advisors, Flexera Software, In-Q-Tel, Agman Partners, Meritech Capital Partners, Polaris Partners, StarVest Partners, Symantec and TELUS Ventures.

Go deeper

Biden plans to ask public to wear masks for first 100 days in office

Joe Biden. Photo: Mark Makela/Gettu Images

President-elect Joe Biden and Vice President-elect Kamala Harris sat down with CNN on Thursday for their first joint interview since the election.

The big picture: In the hour-long segment, the twosome laid out plans for responding to the pandemic, jump-starting the economy and managing the transition of power, among other priorities.

The quick FCC fix that would get more students online

Illustration: Sarah Grillo/Axios

As the pandemic forces students out of school, broadband deployment programs aren't going to move fast enough to help families in immediate need of better internet access. But Democrats at the Federal Communications Commission say the incoming Biden administration could put a dent in that digital divide with one fast policy change.

State of play: An existing FCC program known as E-rate provides up to $4 billion for broadband at schools, but Republican FCC chairman Ajit Pai has resisted modifying the program during the pandemic to provide help connecting students at home.

Dion Rabouin, author of Markets
1 hour ago - Politics & Policy

America's hidden depression

Biden introduces his pick for Treasury secretary, Janet Yellen, on Dec. 1. Photo: Alex Wong/Getty Images

President-elect Biden faces a fragile recovery that could easily fall apart, as the economy remains in worse shape than most people think.

Why it matters: There is a recovery happening. But it's helping some people immensely and others not at all. And it's that second part that poses a massive risk to the Biden-Harris administration's chance of success.