||By Kevin Dee, Co-Founder of Eagle
This post first appeared on the Eagle Blog on December 7h, 2020
This is my 30,000 foot look at events in the Tech industry for November 2020. 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 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 announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.
Three 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, Skyhigh Networks which used to be an Intel company. Smaller deals saw Talend buy Restlet and Qualys buy Netwatcher.
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 to date, 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.
Last year, November 2019 saw quite a few “big dollar” deals. The biggest saw Apollo Global taking TechData private in a deal worth $5.4 billion. Google sold its Stubhub subsidiary to Viagogo for $4.05 billion; Xerox sold 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 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.
Which brings us back to the present …
November 2020 continued the trend of M&A activity that we have seen these last few months, despite or perhaps because of the pandemic. Certainly, there are distressed companies “out there”, but many companies are also just continuing to pursue their long term strategies.
The biggest deals this month saw Adobe shell out $1.5 billion for Workfront, a work management software company; Coupa Software paid $1.5 billon for AI powered supply chain design and planning company Llamasoft; Telus International also bought AI capability with their $1.2 million purchase of Lionbridge AI; and Palo Alto Networks paid $800 million for security vendor Expanse.
Security company FireEye paid $186 million for cybersecurity investigation automation company Respond; and Connectwise paid $80 million for cybersecurity company Perch Security. IBM made a couple of acquisitions; TruQua Enterprises is an SAP consulting company and Instana an application performance monitoring company with AI capability.
There were plenty more deals including Cisco buying cloud company Banzai Cloud; Splunk bought network monitoring company Flowmill; Ping Identity bought developer Symphonic Software; cybersecurity company Barracuda bought remote access company Fyde; StorCentric bought storage company Violin Systems; and another cybersecurty deal saw Acronis buy CyberLynx.
Apple was in the news this month, settling a case related to their throttling performance on iPhones to encourage users to upgrade.
Around the world we continue to deal with the pandemic. There is promising news of vaccines, which will bring some relief as they are rolled out. Economic indicators and job numbers have been improving for several months, but we are seeing rising cases and more lockdowns so the recovery is forecast to slow down.
That’s my look at the tech industry for November 2020. The full edition will be available soon on the Eagle website. Until next month Walk Fast and Smile … don’t forget to be safe, wear a mask, wash your hands and socially distance. We will get through this together!