|By Kevin Dee,
Chairman of the Board at Eagle
This is my 30,000-foot look at events in the ICT industry for June 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 June in previous years
Five years ago, in June 2013, Salesforce.com purchased marketing technology company ExactTarget for $2.5 billion, which was the big buy of the month. Other acquisitions included Irish mobile company Three’s purchase of O2 Ireland for $780 million; SanDisk paid $307 million for SMART Storage Systems; Cisco bought Composite Software for $180 million; IBM bought cloud company SoftLayer Technologies; and Buytopia.ca was on a spree with six acquisitions in the last year.
June 2014 included some significant deals announced, with Oracle paying $5 billion for Micros Systems; Sandisk paid $1.1 billion for solid state storage company Fusion-io; and Google continued its push into home automation, witnessed by its subsidiary Nest paying $550 million for cloud-based home monitoring service Dropcam. Google itself paid $500 million for Skybox Imaging, a satellite maker to enhance the Google Maps capability. Twitter paid $100 million for mobile marketing platform Tap Commerce and Red Hat paid $95 million for eNovance.
In June 2015, Intel paid $16.7 billion for semiconductor company Altera Corp. Cisco paid $635 million for security firm OpenDNS in addition to picking up OpenStack company, PistonCloud Computing. Microsoft bought 6Wunderkinder, maker of task management app Wunderlist; Ricoh Canada bought Graycon Group, a professional services firm headquartered in Calgary; and finally, IBM bought OpenStack company Blue Box Group.
June 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty; and there was plenty of M&A activity. The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $2.6 billion. There were other billion dollar deals that month too: Salesforce paid $2.8 billion for e-commerce platform maker Demandware and Amazon announced an extra $3 billion investment in its India operations. Other significant deals included Daetwyler Holdings AG paying more than $877 million for Raspberry Pi maker Premier Farnell Plc; Red Hat paid $568 million for API management software company 3Scale; and OpenText paid $315 million for HP’s Customer Communication Management products. Other noteworthy deals included an investment group’s purchase of Dell’s software arm; Microsoft bought natural language start up Wand Labs; and Samsung bought cloud computing company Joyent. Also, Google Capital announced its first investment in a public company, investing $46 million in Care.com, an online personal services marketplace platform.
June 2017 saw Amazon’s purchase of Whole Foods for $13.7 billion. Westcon-Comstar’s American business was being bought by Synnex for approximately $800 million. US fintech provider, Fiserv, purchased British financial services technology firm, Monitise for $88.7 million. Microsoft purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace acquired TriCore in an effort to increase their business from customers who want help running their critical applications. Ebix Inc. entered into a joint venture with Essel Group while acquiring a majority stake in ItzCash for $120 million.
Which brings us back to the present
June 2018 saw a fair bit of M&A activity, the biggest deal seeing Synnex pay $2.43 billion for call centre company Convergys and AT&T pay $1.6 billion for advertising tech company AppNexus. Palo Alto Networks is paying $300 million for Security company Evident.io; PayPal is shelling out $120 million for fraud detection startup Simility; Splunk is paying $120 million for incident management platform company VictorOps; Ribbon Communication is paying $120 million for Edgewater Networks; and Sharp is paying $36 million for Toshibas PC business. Other companies out shopping include Cisco who bought WiFi analytics company July Systems; IBM bought maintenance and repair company Oniqua and Shopify bought app company Return Magic.
Skills shortages were a theme around the world as hiring plans in most countries are positive. Confidence is high in many economies, including Canada’s despite the storm clouds surrounding NAFTA negotiations and the trade war with the US. Speaking of the US, their economy continues to roll along with very favorable indicators almost everywhere.
That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the July 2018 industry news in just about a month’s time.
Walk Fast and Smile.