This is my 30,000 foot look at events in the tech industry for June 2016. 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 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).
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).
Three years ago, in 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.
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.
Last year June 2015 saw Intel pay $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.
Which brings us back to the present …
June 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty that will likely continue for some time yet; plus there was plenty of M&A activity. The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $26 billion. There were other billion dollar deals this month too, Salesforce paid $2.8 billion for e-commerce platform maker Demandware and Amazon announced anextra$3 billion investment in its India operations. Other significant deals saw Daetwyler Holdings AG pay 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 deals saw an investment group buy 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.
The US economic news was less buoyant, but they still added 170,000 new jobs and all indicators are relatively positive … just not as positive as the past couple of years. Canada continues to show little sign of booming, but that is likely expected given our dependence on a hurting resource sector and the ambivalence of our governments to provide any help to that sector.
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 2016 industry news in just about a month’s time.
Walk Fast and Smile.