This is my 30,000 foot look at events in the ICT industry for June 2015. 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).
In June 2013 Salesforce.com’s $2.5 billion purchase of marketing technology company ExactTarget was 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 recent acquisitions .
June 2014 saw some significant deals announced with Oracle’s paying $5 billion for Micros Systems; Sandisk paid $1.1 billion for 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. Twitter paid $100 million for mobile marketing platform Tap Commerce and Red Hat is paid $95 million for eNovance.
Which brings us back to the present …
June 2015 was another decent month for the US economy, with another 200,000 jobs created and hiring plans positive. There were however some negative influences, including the oil and gas sector which is no surprise and a slowdown in growth expectations which given the rate of growth recently was just inevitable. Overall the US still looks very positive. Canada announced that it added almost 59,000 jobs in April but other indicators are less positive with hiring prospects diminished and the impact of the oil prices on the economy.
This month we saw Telus shut down all Blacks stores in Canada, which is the end of an era for a, previously well known, brand. Intel also announced an interesting diversity program investing $70 million in its venture fund towards minority start-ups. Uber continues to hit the news beyond protests and jailings, with its desire to build its own mapping technology.
On the M&A front 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.
The final word goes to a story with a twist on the malware front. because it appears criminals are now using extortion to release people’s data back to them! Be careful out there!
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 2015 industry news in just about a month’s time.
Walk Fast and Smile.