|By Kevin Dee,
Chairman of the Board at Eagle
This is my 30,000 foot look at events in the Tech industry for April 2018. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.
A Little History of April in previous years …
Five years ago, in April 2013 Rogers paid $200 million for Primus’s Blackiron subsidiary, including datacenter capability; Toronto based Softchoice also chose to go private in a $412 million private equity deal; Shaw paid $225 million for an Enmax fibre network subsidiary in Calgary; Best Buy sold its stake in Carphone Warehouse for $775 million (having paid $2.1 billion in 2008). Google paid $30 million for social company Wavii. Other big names on the acquisition trail in April 2013 included Intel (Mashery), IBM (Urbancode); Computer Associates (Nolio). Finally, Facebook had a couple of small acquisitions Osmeta and Parse. April 2014 saw Microsoft officially entered the handset business with the completion of the $7.5 billion purchase of Nokia’s devices business. Zebra Technologies paid $3.5 billion for Motorola’s unit that makes mobile devices for business which is a move in the ever-expanding Internet of Things space. Apple paid $479 million purchase of the LCD chip development unit of Renesas Electronics. IBM snapped up marketing automation software company Silverpop Systems and open source software company Red Hat paid $175 million for storage company Inktank. In April 2015 there was plenty of action. Nokia was the biggest story, paying $16.5 billion for telecom company Alcatel-Lucent, but there was also a $4 billion deal that saw Capgemini buy services firm IGATE and LinkedIn made its largest acquisition ever, paying $1.5 billion for training portal Lynda.com. LinkedIn also bought a predictive insights startup company, Refresh. Netsuite paid $200 million for ERP and commerce software company Bronto Software and Blackberry reputedly shelled out $150 million for file sharing security company Watchdox. Salesforce was also out shopping, picking up mobile two-factor authentication startup, Toopher. In another deal involving billions, Informatica decided to follow in DELL’s footsteps and go private for a $5.3 billion price tag. April 2016 saw some big deals, the biggest was Bell’s $3.8 billion bid for Manitoba Telephone System, which closed in 2017. Other large deal saw a Chinese conglomerate bid $3.6 billion for Lexmark; and Plantronics shell out $2 billion for Polycom. Oracle paid $663 million for cloud based construction software company Textura. Nokia, who were also in the news announcing layoffs,continued to evolve their business model, this time into the wearable tech arena with the $192 million purchase of Withings. Other deals saw Autodesk acquire 3D animation software company Solid Angle; and Dimension Data bought Toronto based cloud services company Ceryx. Last year in April 2017 Microsoft bought Israeli cloud-monitoring and analytics startup, Cloudyn. Flipkart, one of India’s larger ecommerce companies, acquired the Indian division of eBay (eBay.in) as part of eBay’s $500 million investment in Flipkart. VMware’s vCloud Air unit was acquired by OVH, a French hosting and cloud company. Global professional services provider, Accenture, purchased the UK-based automation services provider, Genfour. Toronto-based startup, Turnstyle Analytics, was acquired by Yelp for $20 million. California-based Coupa Software purchased Swedish software company, Trade Extensions for $45 million. Montreal-based financial technology provider, Alithya acquired big data solution provider, Systemware Innovation Corporation. Other interesting news saw ride-hailing company, Lyft, raise $600 million in additional investments bringing the company’s valuation up to $7.5 billion.
Which brings us back to the present …
April 2018 was not super busy on the M&A front although there were a few deals, including a $2 billion purchase of Ottawa based Mitel by Searchlight Partners, who will take the company private. Mobile payments company Square paid $365 million for website company Weebly; iconic photo site Flickr has been bought by SmugMug; Adobe acquired AI startup Uru; Indeed bought Canadian jobs site Workopolis; and HPE Pointnext bought Redpixie.
My website breach of the month was the Nova Scotia Government’s access to information site which had 7,000 sensitive documents breached … and marketing firm AppsFlyer tells us that there was about $800 million of “ad fraud” in the first quarter of 2018.
The economy in the US continues to show lots of promise, with almost every indicator being positive. There are some indicators that Brexit is starting to impact the UK and the EU negatively. Most other countries, including Canada had reasonably good job numbers.
That’s it for my look at what was happening in the technology space over the last month, compared to the same month in previous years. I’ll be back at the beginning of June, until then – walk fast and smile!