This is my 30,000 foot look at events in the ICT industry for June 2014. 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 2009 Intel paid $884 million for Wind River Systems and Nokia Siemens took advantage of the fire-sale at Nortel, picking up their CDMA and LTE assets for $650 million.
June 2010 was a slow month in M&A but Canadian data centre company Fusepoint was snapped up by Savvis for $135 million; Twitter bought SmallThought Systems; and IBM bought Coremetrics.
In June 2011 the big deal of the month was Ericsson’s $1.5 Billion purchase of Tecordia; Oracle made a couple of acquisitions (storage vendor Pillar Data and Fatwire Software); Google also made a couple of acquisitions, (analytics company PostRank and advertising management company Admeld).
Two years ago in June 2012 Microsoft’s $1.2 billion purchase of Yammer was the big deal of the month. Salesforce paid $689 million for Buddy Media; Google reputedly paid $100 million for Meebo; Facebook bought facial recognition company Face.com; and Oracle bought “social intelligence” company Collective Intellect. Another “buy” of interest to us at Eagle was the reputedly 7 figure purchase of Bullhorn by Vista Equity Partners (Bullhorn is Eagle’s front office software).
Last year, June 2013 saw Salesforce.com’s $2.5 billion purchase of marketing technology company ExactTarget as the big buy of the month. Other acquisitions saw Irish mobile company Three pay $780 million for O2 Ireland; SanDisk paid $307 million for SMART Storage Systems; Cisco bought Composite Software for $180 million; IBM bought cloud company SoftLayer Technologies; and Buytopia.ca has been on a spree with six acquisitions in the last year.
Which brings us back to the present …
June 2014 saw a number of positive survey results showing increased hiring intentions and improved confidence most especially in the US, but also there were positive signs in Europe. The UK in particular seemed to demonstrate a “broad based economic recovery” and generally employment in the Eurozone improved.
Canada however continues to limp along with unemployment rising again to 7% and even one report suggesting we have experienced a slight contraction in 2014 thus far. It would not surprise me and perhaps when we see an end to knee jerk reactions such as the Canadian Government’s changes to the Temporary Foreign Worker program, we might create an atmosphere of growth supporting Canadian business.
There were some significant deals announced in June with Oracle’s $5 billion purchase of Micros Systems, in its pursuit of the cloud space, the largest this month. Sandisk was next with its $1.1 billion purchase of solid state storage company Fusion-io. Google continues 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 that will enhance the Google Maps capability. Yahoo is said to be positioning to compete with Youtube, through a proposed $250 million offer for Fullscreen. Twitter paid $100 million for mobile marketing platform Tap Commerce and Red Hat is paying $70 million for eNovance.
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 2014 industry news in just about a month’s time.
Walk Fast and Smile!