IT Industry News

IT Industry News – July 2019

Cisco’s $2.6 billion acquisition of Acacia Communications was the biggest deal. Apple splashed $1 billion to buy Intel’s smartphone modem business, and KKR bought Corel for $1 billion too. There were a few more deals with Google buying storage company Elastifile; 8X8 cloud communications company paying $100 million for Platform as a service company Wavecell; and finally Epam Systems bought educational content company Competentum. There was another big cyber breach announced with Capital One sharing data on more than 100 million customers. There was also a malware called “Agent Smith” that infected 25 million Android devices. A report on how AI will impact on jobs seemed significant, but most of the respondents believe new roles will replace the lost jobs. On the economic front, the current US economic expansion is the longest on record, and there are still lots of positive indicators. Canada lost jobs in June and continues to have struggles.

IT Industry News – June 2019

June 2019 saw some significant M&A deals with the Salesforce acquisition of Tableau for $15.7 billion, the largest deal of the month. Infinion Technologies paid $10 billion for Cypress Semiconductor; Google paid $2.6 billion for data analytics company Looker; Capgemini shelled out $3.6 billion for engineering company Altran and in the robotics world, Blue Prism paid $100 million for Thoughtonomy. Other companies with smaller buys included Apple picking up the assets of Drive.ai and Twitter buying machine learning startup Fabula AI. The Canadian Federal Government invested $5 million into an innovation centre in Markham and there was more news about CyberSecurity breaches. In Canada, the job numbers are interesting, with Statistics Canada suggesting May was a bumper month, and ADP suggesting we actually lost jobs. The US had some mixed reports regarding the economy but overall the story is still positive. Likewise, indicators on jobs and employment around the world are also positive.

IT Industry News – May 2019

The big deal in May 2019 saw HPE pay $1.3 billion for supercomputer manufacturer Cray. Palo Alto Networks continued growing its cybersecurity capability with the purchase of two companies, Twistlock and PureSec. Plus, there was some M&A activity among a number of other well-known companies. Cybersecurity continues to be topical, with an Accenture report highlighting the increasing cost to companies for cybercrime; a Proofpoint report also highlighted the sheer volume of attacks on Canadian businesses. Other news saw some Canadian cities receiving Federal taxpayer money to improve their SmartCity initiative and there has been a lot of news on 5G. A look around the world at employment numbers and economic indicators suggests that generally employment numbers are improving, with a few exceptions.

IT Industry News – April 2019

Intel bought Omnitek, a company that produces programmable chips for the video space. This comes as Intel announced it was exiting the 5G modem space for smartphones, suggesting it was not a profitable business for them. The other deal saw the merger of two large US-based MSPs, as Corsica bought EDTS to compete at the next level. Another company in the press this month was Microsoft, who reached that magic valuation point of $1 trillion, becoming the third company to hit that milestone after Apple and Amazon. The general economic news was positive with the US continuing to soar with very low unemployment, rising wage rates, an annualised GDP growth rate of 3.2% in the first quarter, all suggesting the US boom will continue for a while yet. Canada continues its anemic growth rate, projected at 1.2% this year. Around the world unemployment is generally down except for pockets like the UK where the Brexit situation continues to be a mill stone around their necks.

IT Industry News – March 2019

In March 2019, the big deal of the month saw Nvidia shell out $6.9 billion for data centre solutions vendor, Mellanox. F5 Networks paid $670 million for up and coming competitor NGINX; and Juniper Networks paid $40 million for AI startup Mist Systems. Some other deals this month were Apple’s acquisition of machine learning startup LaserLike; Veritas’ acquisition of analytics company Aptare; Mastercard bought security company Ethoca; and Spotify added to its podcast capability with the purchase of Parcast. Other companies in the news included Lyft, SAP and SAS. The University of Toronto received a $100 million donation (largest ever) from Heather Reisman and Gerry Schwartz. Economic news around the world was generally relatively positive, although things are slowing down and forecast GDP growth in the US and Canada has been downgraded for 2019.

IT Industry News – February 2019

In February 2019, The biggest deal we saw was Carbonite’s $618 million acquisition of internet security company Webroot. Palo Alto Networks seems to be on a buying spree, closing two deals this monthThe money guys were out shopping too, with Thoma Bravo paying for Connectwise and Trive Capital paid $330 million for Windstream’s Earthlink telephone service provider assets. Spotify announced its podcast intentions with a couple of acquisitions and Witricity strengthened its hand in the wireless charging space with the acquisition of Qualcomm’s Halo business unit. There were some big names out shopping too, including Microsoft, Amazon, DXC, and Semantec. Other companies in the news include Canadian engineering company SNC-Lavalin, Cognizant, Monster and, of course, Amazon who rescinded its choice of New York as a location for a huge investment & additional “headquarters”. Around the world the jobs situation is generally positive, if not “as positive” as in previous months.

IT Industry News – January 2019

In January 2019, the biggest deal saw DXC pay $2 billion for Luxoft, DXC also bought EG A/S. Amazon Web Services made a couple of acquisitions: CloudEndure and TSO Logic. Accenture was another high-profile company making multiple acquisitions in January: Enaxis Consulting and Orbium. Dropbox splashed $230 million to buy HelloSign; Google bought DORA; Microsoft bought database startup Citus; AT Kearney bought consulting company Cervello; and Zix paid $275 million for email security company AppRiver. There were a number of companies announcing layoffs, including Tesla (7% of workforce); AT&T; Verizon Media (7% of workforce); McAfee (200 people) and SAP (4,000) although SAP suggest they will have net job growth in 2019. Canada added jobs in December and there is concern about Europe entering a recession. Generally, around-the-world job numbers look not too bad, with the US continuing to show strong job growth. The message of skills shortages is also being heard around the world.

IT Industry News – December 2018

December 2018 saw IBM sell off a portion of their software portfolio to HCL for $1.8 billion. Cisco paid $660 million for optical chip company, Luxtera; and OpenText paid $310 million for data management company Liaison Technologies. In other deals, Google bought “where is my train” app company, Sigmoid Labs; Corel bought desktop virtualization company Parallels; Trello bought Butler, whose product is a popular addition for Trello users; Kaseya bought IT documentation company IT Glue; and GE continued its restructuring efforts by spinning out its IoT subsidiary and selling its interest in Pivotal. Finally, the end of December was the beginning of Dell’s return as a public company. Other companies in the news include Huawei, who are facing bans in many countries with concerns over its relationship to the Chinese government; and Verizon announced some large-scale layoffs, affecting 10,400 jobs.

IT Industry News – November 2018

November 2018 was a busy month in the M&A space, with lots of action! Among the many deals, the largest saw SAP shell out $8 billion for experience management company Qualtrics. Not far behind was Commscope paying $7.4 billion for telecommunication equipment maker Arris. Vista Equity partners paid $1.94 billion for cloud software company Apptio; and private equity fund CVC paid $1.8 billion for a global IT and managed services provider, ConvergeOne Holdings. The final billion-dollar deal saw Blackerry make its largest acquisition to date, paying $1.4 billion for AI cybersecurity startup Cylance. If that wasn’t enough action for one month, Amazon announced it would be investing $5 billion into its new headquarters in New York City and Arlington Virginia; Marriott announced a data breach that affects 500 million guests; and Facebook also announced a security breach affecting 50 million users!

IT Industry News – October 2018

October 2018 was an interesting month, with some significant M&A activity and the sad passing of yet another tech pioneer, Paul Allen, who cofounded Microsoft with Bill Gates. On the M&A front, IBM’s $34 billion acquisition of Red Hat was a game changer, overshadowing $2 billion deals by Thoma Bravo for Imperva and Twilio for SendGrid. Other deals saw Honeywell paying $493 million for Transnorm; Palo Alto Networks paying $173 million for Redlock; Computacentre paying $70 million for FusionStorm; GTT Communications paying $40 million for Access Point; and Fortinet spending $18 million for ZoneFox. There was plenty more M&A activity with big names involved. Other companies in the news include Google who are closing their Google+ social network amid security concerns and Amazon who announced 1,000 new jobs in the UK. On the economy and jobs front, the news was generally positive around the world.