This is my monthly look at what transpired in the ICT industry. I publish more detail on the Eagle website, and it should be up there in the next 24 hours.
In June last year (2006) the big news was the creation of a $20 Billion company through the merger of the telecommunications arms of Nokia and Siemens. It was also just one year ago that Warren Buffet donated $30 Billion to the Gates Foundation!
So … what was big in June 2007? The news appears to be all about (a) M&A activity and (b) layoffs.
There were a number of billion dollar deals in June, the largest being the purchase of Avaya for $8.2 billion by private equity firms Silver Lake and TPG Capital. Another private equity deal saw Ceridian bought for $5.3 billion by Thomas H Lee partners and Fidelity National Financial. Flextronics paid $3.6 billion for Solectron and Commscope paid $2.6 billion for Andrew Corp.
Other deals this month included Cybersource paying $565 million for Authorize.net plus a couple of “smaller” deals involving household names like Google, eBay, HP and Microsoft. Although not technically M&A activity, Microsoft did pay $200 million to acquire a couple of new data centres!
There were a lots of jobs axed at various companies in June. Dell headed the list announcing cutbacks of 10%, which could be more than 8,000 jobs. IBM let go 1,300 people, LSI cut 900 jobs, and Intel is laying off 800 people.
Certainly June was a month of ups and downs, the number of layoffs was surprising given the recent increased focus on skill shortages!