This is my 30,000 foot look at events in the ICT industry for January 2017. 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 Januarys …
Five years ago, in January 2012 things were very quiet in M&A – former tech giant JDSU was back on the acquisition trail, even if just to pick up a small Vancouver based company, Dyaptive Systems. Symantec paid $115 million for LiveOffice to help with its storage capabilities, Google bought a bunch more IBM patents, and Xerox picked up Laser Networks in the managed printing space. Rim (now Blackberry) also announced a change in leadership.
Three years ago, in January 2013 Cisco bought mobile network software company Intucell for $475 million and sold its Linksys division to Belkin. The biggest dollar value deal was AT&T’s purchase of some of Verison Wireless’s airwaves for $1.9 Billion. Other deals saw NCR buy video software ASTM company uGenius Technology; Canon Canada acquired long-time partner and document management company Oce Canada; NetSuite bought retail management systems company Retail Anywhere; and AVI-SPL bought Duocom-Duologik.
January 2014 was an interesting month with a few big M&A deals. Google was an especially busy player, selling its Motorola Mobility handset unit to Lenovo for $2.9 billion but paying $3.2 billion for Nest Labs and the company also bought Bitspin. The other big deal saw VMware pay $1.17 billion for mobile device management company AirWatch. Other big names on the acquisition trail included Oracle who bought cloud based service delivery company Corente; Microsoft paid a reputed $100 million for cloud based service company (seems to be a theme) Parature; Ricoh purchased IT service company Mindshift from BestBuy; and Hootsuite bought analytics company uberVu.
In January 2015, the biggest deal was Hutchison offering more than $14 billion for O2. Other big dollar news saw Yahoo looking like it might be remaking itself, spinning off its $40 Billion stake in Alibaba to become smaller, leaner and either buy or be bought! The final M&A activity involving a "B" was Telco equipment company Commscope offering $3 billion for TE Connectivities network business. There were also a number of very well-known companies out buying, and in no particular order ... Amazon paid something like $300 million (approximate) for chip designer Annapurna Labs; Expedia bought its online travel competitor Travelocity for $200 million; Samsung paid $100 million for Brazil's largest print company Simpress; Google paid about $100 million for mobile payments company Softcard; Facebook bought Wit.ai a company that has a Siri like solution that can be embedded in other products; Dropbox bought CloudOn a document editing and productivity tools company; Twitter paid somewhere between $30 million and $40 million for Zipdial, an Indian company that does some funky marketing thing with phone hang ups; and finally Microsoft made two acquisitions, startup text analytics company Equivo and in a departure from its history it bought open software company Revolution Analytics.
There were no huge deals in January 2016, but there was plenty of activity with some of the household names out shopping. IBM bought video service provider Ustream; Microsoft bought game form learning tool MinecraftEdu; Apple bought "emotion recognition" company Emotient; and Oracle bought media web tracking firm AddThis. Toshiba bought an ERP solutions company Ignify, and a number of smaller deals included Juniper Networks buying BTISystems Inc.; FireEye bought iSight partners; Acceo Solutions bought Groupe Techna and SmartPrint bought LaserCorp's Toronto based managed print services business.
Which brings us back to the present...
In January 2017 the multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. HP Enterprise purchased data center hardware provider, SimpliVity for $650 million. Microsoft acquired Montreal-based deep learning start-up Maluuba for an undisclosed sum. Google has announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app has been purchased by Atlassian for $425 million. CRM giant, Salesforce bought Unity&Variety to enhance its productivity app service Quip Managed Service Provider of data and database administration, Datavail, acquired Canadian IT channel leader Navantis.
Some non-M&A news in January included IBM announcing it broke the US record for number of patents granted in a single year – 8,088 to be exact. Avaya Inc. announced it filed for Chapter 11bankruptcy protection as a result of accumulating debt from their major acquisitions in the last ten years. According to a report released by Gartner Inc. 2016 saw a decrease in the shipment of PCs, the lowest it has been since 2007.
That’s my look at the tech news for January 2017. Until next month, walk fast and smile!