The Eagle Blog

June IT Industry News

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 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!

Share on FacebookTweet about this on TwitterShare on LinkedInEmail this to someonePin on PinterestShare on Google+

Leave a Reply

Your email address will not be published.