IT Industry News

IT Industry News – August 2017

August 2017, as has been the case for most of this year, was relatively slow on the M&A front. Symantec is selling its website security business to DigiCert for $1 billion, plus a stake in the larger entity. Cisco paid $320 million for hyperconvergence company Springpath, CGI bought consulting company in Pittsburgh, Summa Technologies and Accenture bought a Toronto consulting company VERAX. While not a pure tech play, the biotech world saw Aclaris pay $100 million for Confluence. There was some drama at Samsung, as Jay Y Lee was jailed for 5 years for bribery. There was also some internal drama at Infosys that saw their CEO Vishal Sikka resign. The Canadian economic indicators were mixed, but new proposed tax reforms, NAFTA negotiations, new labour laws in Ontario and an impending carbon tax that will hurt clearly have a negative impact on the Canadian economy. Meanwhile, the US economy seems to keep adding jobs and have fairly positive indicators.

IT Industry News – July 2017

Cincinnati Bell Inc. is buying Hawaiian Telcom Holdco Inc. for $650 million and OnX for $201 million. Mitel announced its acquisition of ShoreTel as well as Toshiba’s unified communications business. In Toronto, digital signage solution provider, Dot2Dot, acquired Pixel Point Digital. PNI Canada Acuireco Corp. has purchased Sandvine Corp. and plans to merge Sandvine with Procera Networks. Reports indicate Microsoft plans to cut up to 3,000 jobs while streaming platform, SoundCloud has laid of 40% of its employees, and data storage provider, Seagate, plans more staff cuts due to weak financial performance. According to threat intelligence provider, Risk Based Security, the number of publicly-reported data breaches in Canada this year is up to 59. In a study conducted by Forrester Data, it is projected there will be 5.5 billion smartphone users around the world by 2020. In other news, there has been a recent increase in investments in European startups according to Invest Europe.

IT Industry News – June 2017

The largest deal of the month was Amazon’s purchase of Whole Foods for $13.7 billion or $42 a share. Westcon-Comstar’s American business is being bought by Synnex for approximately $800 million. US fintech provider, Fiserv purchased British financial services technology firm, Monitise for $88.7 million. Microsoft has purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace has acquired TriCore in an effort to increase Rackspace’s business from customers who want help running their critical applications. Ebix Inc. has entered into a joint venture with Essel Group. while acquiring a majority stake in ItzCash for $120 million.

IT Industry News – May 2017

The most significant purchase in May 2017 was the $1.86 billion sale of CenturyLink’s data centres and colocation business to a consortium led by BC Partners, Medina Capital Advisors and Longview Asset Management. Cybersecurity startup, Hexadite, was bought by Microsoft for $100 million. Goldman Sachs entered the BI space by purchasing a minority stake in Information Builders of New York City. Apple acquired Beddit, a Finnish sleep sensor product, for an undisclosed amount. Finnish cybersecurity firm, F-Secure acquired British security consultants, Digital Assurance also for an undisclosed amount. In other news, increasing smartphone sales around the world are not coming from tech giants like Apple and Samsung. Chinese smartphone makers are on the rise and gaining significant market share at home and in other densely populated countries.

IT Industry News – April 2017

In April 2017, it was reported that Microsoft plans to purchase Israeli cloud-monitoring and analytics startup, Cloudyn. Flipkart, one of India’s larger ecommerce companies, has acquired the Indian division of eBay (eBay.in) as part of eBay’s $500 million investment in Flipkart. VMware’s vCloud Air unit will be acquired by OVH, a French hosting and cloud company. Global professional services provider, Accenture, purchased the UK-based automation services provider, Genfour. Toronto-based startup, Turnstyle Analytics, has been acquired by Yelp for $20 million. California-based Coupa Software purchased Swedish software company, Trade Extensions for $45 million. Montreal-based financial technology provider, Alithya acquired big data solution provider, Systemware Innovation Corporation. In other news, the demand for PCs continues to decline reaching a low that has not been experienced since 2007. In Q1 of 2017, PC shipments fell by 2.4%, which signifies the 10th quarter of decline. The ride-hailing company, Lyft, has raised $600 million in additional investments bringing the company’s valuation up to $7.5 billion. BlackBerry has won a binding arbitration case against Qualcomm for $815 million.

IT Industry News – March 2017

In March 2017, the major acquisition in the headlines is Intel’s purchase of Israeli computer vision company, Mobileye, for a hefty $15.3 billion. HPE bought storage solution provider, Nimble, for $1 billion. DeskConnect, the startup that developed the Workflow app, has been acquired by Apple who will offer the app for free. Amazon Web Services, a public cloud infrastructure provider, acquired Thinkbox Software, a company that provides software for managing media rendering workloads. Mozilla acquired Pocket, a startup that developed an app for saving articles and other content. In other tech news, Statistics Canada released a report highlighting Canadian participation in the sharing economy, i.e. peer-to-peer services, and its role in the Canadian economy. Another story that took headlines last month was that US corporate information, including work email addresses and phone numbers, was leaked from a 52-gigabyte database owned by Dun & Bradstreet.

IT Industry News – February 2017

February 2017 saw very little M&A action. Nokia paid $371 million for Comptel and Apple picked up an AI startup company RealFace. Another company in the news, but for the wrong reasons was Samsung which is in the middle of a significant bribery scandal. On the economic front there were a lot of positive indicators out of the US and Canada also added 48,000 jobs in January. Around the world, the UK is starting to see some labour impacts from the Brexit decision as EU nationals are not applying for jobs they used to do. Brazil reached a record high in unemployment, in India hiring activity declined and in China there is expected to be a boom in hiring. Perhaps more interesting this month than the M&A activity, or lack thereof, were some other tidbits of news.

IT Industry News – January 2017

The multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. In additiona, HP Enterprise purchased data center hardware provider, SimpliVity, Microsoft acquired Montreal-based deep learning start-up Maluuba, Google announced plans to purchase Fabric, Trello has been purchased by Atlassian, Salesforce bought Unity&Variety and 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 11 bankruptcy 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.

Industry News – December 2016

In December 2016, Adecco sold its majority stake in Beeline VMS to GTRC for $100 million in cash plus a $30 million note; SS&C purchased Conifer for $88.5 million; QRX Technology Group acquired IT equipment provider Kerr Norton; Juniper Networks acquired cloud operations management provider AppFormix; Uber bought Geometric Intelligence Inc.; and Shopify acquired Tiny Hearts, a Toronto-based mobile product development studio. In other news, Yahoo disclosed that one billion accounts were hacked in 2013, making it the largest data breach recorded in history. To safeguard against hacking attempts on your devices, Check Point Software advises users to make sure they download the latest versions of software as they have discovered new malware that targets devices running outdated software. Cyber attacks and security breaches are also a major concern for IT and business professionals where, according to Symantec, 30% of business surveyed have experienced a hack over the last two years.

Industry News – November 2016

November 2016 saw some M&A activity, although it was not too busy. The big deal of the month saw Broadcom acquire Brocade Communication Systems. Adobe also purchased TubeMogul; Wipro Limited will Appirio; Oracle Corp. has announced its plans to acquire Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster. In other news, hackers caused some problems for Casino Rama Resort and AdultFriendFinder exposed 340 million users’ information. A Harvey Nash Technology Survey suggests 94% of technology professionals across the world believe a significant part of their job will be automated within ten years, rendering their current skills redundant. The economic indicators in the US were generally favourable and jobs numbers were quite positive. Canada’s economy continues the same tepid trend we have seen for quite some time. Sometimes up a little, sometimes down a little, with unemployment hovering around the 7% mark.