|By Kevin Dee, Co-Founder of Eagle|
This is my 30,000-foot look at events in the Tech industry for November 2019. 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 previous year’s Novembers …
Five years ago, November 2014 was an exceptionally quiet month on the M&A front with the largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll.
November 2015 saw Expedia pay $3.9 billion for HomeAway as a vehicle to better compete with Airbnb. Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream. Other smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in a Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify. Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton based services firm Acrodex; Data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington-based New Signature bought Toronto-based Microsoft Partner, Imason.
In November 2016, Broadcom acquired Brocade Communication Systems for $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited bought IT cloud consulting firm Appirio for $500 million; Oracle Corp. announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.
Two years ago, in November 2017, the big M&A activity for the month saw investment firm Thoma Bravo pay $1.6 billion for Barracuda networks. McAfee also made an acquisition of Skyhigh Networks and smaller deals saw Talend buy Restlet and Qualys buy Netwatcher.
Last year, November 2018 was a busy month in the M&A space, with lots of action! The largest deal saw SAP shell out $8 billion for experience management company Qualtrics. Not far behind was Commscope paying $7.4 billion for telecommunication equipment maker Arris. Vista Equity partners paid $1.94 billion for cloud software company Apptio; and private equity fund CVC paid $1.8 billion for a global IT and managed services provider, ConvergeOne Holdings. The final billion-dollar deal saw Blackerry make its largest acquisition, paying $1.4 billion for AI cybersecurity startup Cylance. In other deals, Thoma Bravo bought security testing vendor Veracode for $950 million; LinkedIn paid $400 million for a surveying startup, Glint; power management company Eaton paid $300 million for Turkish company Ulusoy Elektrik; and Citrix shelled out $200 million for intelligent portal company Sapho. There were plenty of big name companies out shopping with no price tag named, Accenture bought a German design agency Kolle Rebbe; Apple bought AI company Silk Labs; HPE bought big data company Bluedata; Oracle bought Talari Networks; Cisco bought networking company Ensoft; Microsoft bought another AI company, startup XOXCO; Red Hat (recently purchased by IBM) bought storage startup NooBaa; VMware bought Kubernotes startup Heptio; Symantec bought a couple of companies, Appthirty and Javelin Networks; and DXC bought a couple of companies TESM and BusinessNow.
Which brings us back to the present …
November 2019 saw quite a few big dollar deals. The biggest saw Apollo Global taking TechData private in a deal worth $5.4 billion. eBay sold its Stubhub subsidiary to Viagogo for $4.05 billion; Xerox is selling its stake in Fuji Xerox such that Fujifilm will own the whole entity at a cost of $2.3 billion; Google paid $2.1 billion for Fitbit ; and Opentext paid $1.4 billion for security company Carbonite. That is a lot of billion-dollar deals for one month!
Other deals saw Proofpoint pay $225 million for threat management company ObserveIT; DXC picked up solution providers, Virtual Clarity and Bluleader; Rackspace bought professional services company Onica, and Mimecast picked up DMARC Analyzer.
One other company in the news was Cognizant, who announced it would be laying off between 10,000 and 12,00 employees.
Economic and jobs news around the world was a little mixed, with signs of things slowing in most countries. Canada lost jobs in October, despite a big boost in public sector hiring. The US had decent job numbers, but signs were less positive moving forward. Of course, less positive, does not mean negative!
Some interesting reports this month, with Canada’s privacy commissioner pointing out that 28 million Canadians were affected by corporate hacks or mismanagement. Pretty interesting for a country with a population of 37.5 million! Two separate AI report suggest different impacts on jobs into the future; The Brookings Institute suggesting Higher paid workers will be the most impacted; and Jim Goodnight suggesting it will be the factory floor most impacted.
One final piece of news and a little plug, as the Global Power 150 list of Women in Staffing was released, with Eagle’s CEO Janis Grantham on the list.
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 November 2019 industry news in just about a month’s time.
Walk Fast and Smile