NEW YORK (TheStreet) -- Shares of Rally Software Development Corp. (RALY) are skyrocketing by 43.67% to $19.41 on heavy volume at the start of trading on Thursday morning, after the cloud-based solutions provider announced it is being acquired by CA Technologies (CA) for $19.50 per share, valuing the transaction at approximately $480 million.
"In a world driven by software, the powerful combination of Rally and CA will help our combined customers to better navigate changing markets, improve performance and deliver value faster - while accelerating the pace of disruption and developing a competitive advantage through technology," Rally CEO Tim Miller said in a statement announcing the merger.
The deal has been unanimously approved by the boards of both companies and is expected to close in CA Technologies' fiscal 2016 second quarter.
"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. Every developer dreams of creating truly transformative software that responds to a business challenge extremely quickly. 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," CA Technologies CEO Mike Gregoire said in the same statement.
So far today, about 3.55 million shares of Rally Software have exchanged hands as compared to its average daily volume of 129,000 shares.