Mergers and Acquisitions in the technology industry

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Chicago-based "social buying" site Groupon will not, after all, be acquired by Google for approaching $6 billion. That's because Groupon's investors and its 30-year old Founder & CEO Andrew Mason (pictured) have reportedly ended the "direct negotiations" between the two companies that Reuters was already reporting on Wednesday were in full flow. CNNMoney.com reports that there had already been "weeks of negotiations" and the New York Times is quoting Greg Sterling, founder of Sterling Market Intelligence, a San Francisco company that researches local markets and the Internet, who is speculating what Google, which has a $30 billion war chest, might need to raise its bid to in order to secure this acquisition: “What would it take? $7 billion? $8 billion? Google’s got $30 billion, which is a lot of cash, but when you’re approaching a third of that, that’s asking for a l... (more)

IBM Acquires @BlueBox | @CloudExpo #IoT #DevOps #OpenStack #Microservices

IBM has acquired Blue Box Group, Inc., a managed private cloud provider built on OpenStack. Customers benefit from the ability to more easily deploy workloads across hybrid cloud environments. Financial details were not disclosed. Enterprises are seeking ways to embrace all types of cloud to address a wide range of workloads. Today's announcement reinforces IBM's commitment to deliver flexible cloud computing models that make it easier for customers to move to data and applications across clouds and meets their needs across public, private and hybrid cloud environments. With Gartner forecasting that 72 percent of enterprises will be pursuing a hybrid cloud strategy this year [1], it is increasingly important for companies to leverage multiple models while maintaining consistent management across their cloud platforms. Through Blue Box, IBM will help businesses rapid... (more)

Oracle Mergers & Acquisitions: Who’s Next?

Beginning in late 2004 with its acquisition of PeopleSoft, Oracle initiated an acquisition campaign that has brought over forty companies into the Oracle fold. During that time, Oracle has made five multi-billion dollar acquisitions – about one per year – all of which have made for big news in the ERP software market. But which company will be next? I would argue that there is a logical way to analyze Oracle’s recent decisions and define a set of strategies that have not only guided past acquisitions but may also tell us where Oracle is headed. Below is a chart that displays the size of each acquisition Oracle has made in the past five years as well as the layer of the technology stack into which that acquisition would be placed. Based on this data, I would argue that the motivations behind Oracle’s major acquisitions are: Grow market share leadership in key enter... (more)

3PAR Prefers HP – For the Moment

Late Friday night when sensible people on the East Coast were either in bed or in their cups, 3PAR's board sent out a message saying it had decided that HP's offer Friday of $30 a share was "superior" to the $27 bid 3PAR had accepted from Dell early Friday morning. It said that it had notified Dell that it intends to terminate their merger agreement in three business days. That's 3PAR's way of telling Dell, which has the right to match HP's 30 bucks and take precedence, to put up or shut up. Dell Saturday repeated that it was thinking and would "make our intent known at an appropriate time." It said after HP went to $2 billion Friday, besting its $1.8 billion early morning bid, that it was assessing what was best for its "investors and customers." The three days starts Monday and it's widely assumed Dell will run out the clock. Wall Street apparently believes that... (more)

IBM Snags Netezza for $1.7BN

"IBM is bringing analytics to the masses," said Steve Mills, senior vice president and group executive, IBM Software and Systems, as it was announced Monday that IBM is to acquire Netezza, Netezza is a leading provider of high-performance analytics in a data warehousing appliance. "We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value," Mills (pictured) continued, adding: Netezza is a perfect example of this approach." Steve Mills via satellite with Jonathan Schwartz during the opening keynote of JavaOne. (Photo copyright: Fuat Kircaali - Ulitzer, Inc.) ... (more)

Google Reportedly Ready To Blow $6 Billion on Groupon

Google is reportedly ready to shell out $5 billion-$6 billion – evidently more like $6 billion – to buy two-year-old Groupon. The All Things Digital blog says the bid works out to $5.3 billion down and $700 million in earnouts unless negotiations fall apart. That’s more than Google paid for any other acquisition. It only spent $3.1 billion on DoubleClick and $1.65 billion on YouTube. Naturally there’s talk it’s overpaying. Groupon and its daily discounts would get Google, whose search practices are now being investigated by the European Commission for antitrust violations, into local business online advertising. Groupon is supposed to have upwards of 12 million registered users and revenues of around $350 million a year with a run rate that Needham & Co analyst Mark May puts at $1 billion, double most estimates. It’s said to be the fastest-growing company ever and it... (more)

HTC Buying Dashwire

It's ostensibly to strengthen HTCSense.com's hand in mobile cloud services since the five-year-old company's Dashworks platform offers mobile and web applications for setting up and personalizing smartphones and tablets, and synchronizing content across multiple devices. However, it's suspected HTC, currently in a multi-front wrestling match with Apple over Android, wants Dashwire at least as much for its patents. Dashwire bought patents off of Nathan Myhrvold's Intellectual Ventures back at the beginning of April but only for defensive purposes. HTC last month agreed to buy S3 Graphics for $300 million, a deal that should bring it a reported 235 mostly graphics patents. Perversely, the International Trade Commission recently decided that Apple's Macs, but not its iPads or iPhones, infringe S3 patents, making it less useful to HTC. Dashwire is backed to the tune of a... (more)

LinkedIn To Acquire SlideShare for $118.75M

"We built SlideShare to help professionals share presentations and connect people through content," commented Rashmi Sinha (@rashmi), CEO of SlideShare, as LinkedIn announced Thursday its agreement to acquire SlideShare. "What we can build with LinkedIn, the largest professional network on the Internet," he continued, "is the most natural extension of this vision. I am excited about what we can build together." A SlideShare presentation outlining the deal can - naturally - be found on LinkedIn’s SlideShare page! “Presentations are one of the main ways in which professionals capture and share their experiences and knowledge, which in turn helps shape their professional identity,” said LinkedIn CEO Jeff Weiner. “These presentations also enable professionals to discover new connections and gain the insights they need to become more productive and successful in their ca... (more)

Oracle’s Acquisition of Xsigo: The Drive to Integrated Stacks

Acquisitions in the cloud computing space have been picking up recently as technology companies look to offer end-to-end solutions.  It also shows that for large companies, innovation through acquisition is becoming more popular as a way to adapt to changing technology trends.  Cloud acquisitions typically fall into the Software as a Service (SaaS) and Infrastructure as a Service (IaaS) category. Oracle has been a voracious cloud acquirer with a number of SaaS acquisitions like RightNow, Taleo and Vitrue.  SAP has also been adding to their SaaS portfolio with purchases of Ariba and SuccessFactors.  IBM, which typically claims that it is not in the “application” space, has been adding to its SaaS portfolio with business analytics solutions like DemandTec and Emptoris.  SaaS solutions are a great way to open cloud markets to large technology companies as the subscrip... (more)

Box Acquires Crocodoc

Box, the cloud storage start-up getting close to going public, has acquired Crocodoc and its HTML5 document rendering and viewing solution. The widgetry works on PDF, Word and other files without Flash or plug-ins. The transformed files can't be edited. Box said Crocodoc's technology will be "deeply integrated" into its cloud content collaboration service, replacing its existing widgetry, and still be a standalone platform for HTML5 document viewing on third-party applications across the web and mobile devices via its API. Box is also going to invest in the technology and ecosystem. The whole Crocodoc team will join Box and co-founder and CEO Ryan Damico will be Box' platform director. Terms were not disclosed. "Content sits at the center of every business, and nearly every business application," said Box CEO Aaron Levie said. "Together with Crocodoc, we're going t... (more)

EMC Reportedly Buys Israeli Start-Up ScaleIO

EMC has reportedly paid $200 million to snap up two-year-old Israeli start-up and would-be competitor ScaleIO and its Elastic Converged Storage (ECS) software, which is supposed to let data centers cut storage costs by maybe 80% or more by converging storage into compute. The software-defined software, which is reportedly easy to scale across thousands of servers, lets virtual SANs operate with the adaptability of block-level storage. Evidently ECS can string together the hard disks on a flotilla of commodity application servers to create a single high-performance shared virtual storage array network (SAN) that offers the scalability and elasticity of block storage. It resembles Amazon Web Services' block storage. ZDnet says it also "elastically aggregates free capacity across a network, with the software managing disks, RAM and network resources to use the free ... (more)