Mergers and Acquisitions in the technology industry

M&A News in Technology

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"Larry Ellison is borderline bat-shit crazy on a good day," the analyst Rob Enderle is quoted as saying in a piece last week by Sam Gustin - a senior writer at DailyFinance, an AOL Finance & Money site. Enderle was prompted to utter this remark by speculation that perhaps the Oracle CEO is about to embark upon the acquisition of his life: of HP. "I think his bet is that he can damage HP enough that it drops in value and he can wander in with an offer," Enderle is quoted as having added. So is it possible that Ellison the Conqueror, CEO of Oracle Corporation since he founded the company in 1977, truly has the $90BN HP in the crosshairs of his acquisition rifle-sight? Can a $120BN company somehow buy and absorb a $90BN one? Well certainly he now has on board the exact right man to tackle the integration of such a purchase: none other than HP's own former CEO, Mark Hurd. A... (more)

Cisco To Buy Skype?

As Dell and HP slug it out to capture 3PAR, Cisco may be adopting a quieter acquisition style and attempting - according to TechCrunch anyway - to acquire Skype. Citing someone he refers to only as "one of our more reliable sources," the Silicon Valley-based site's senior editor Michael Arrington claims Cisco has already made an offer before Skype has time to complete its recently announced IPO. It is five years now since eBay famously acquired Skype for $1.9 billion. Such an acquisition by Cisco, if it were confirmed, would mark a new scale for the current round of M&A activity, which has seen Intel acquiring McAfee, HP acquiring Palm and 3Com, EMC acquiring Data Domain, and so on. Not to mention Oracle's acquisition of Sun, or Dell's of Perot Systems. Speculation is rife that Google and Microsoft are both now in search of a major quarry. And certainly IBM is hoovering u... (more)

Private Bankers May Move To Take Over BMC

Private equity houses KKR, TPG Capital or Bain Capital Partners may be persuaded to take BMC private. Bloomberg says the company, which has a market cap of $6.5 billion, met with potential buyers last week. It also approached Oracle, Cisco, Dell, EMC and CA. Bloomberg says those strategic investors are unlikely to bite because they’re not interested in BMC’s old-line mainframe software and breaking up the company would be expensive. The Texas company also sells software for storage management, database performance and data recovery. It’s under pressure from activist shareholder Elliott Management to sell out and recently hired Bank of America Merrill Lynch to scout out opportunities. Elliott now owns at least 7.7% of BMC and got two people on the BMC board in July at the threat of a proxy fight. ... (more)

Akamai to Acquire Prolexic

Akamai Technologies, Inc. and Prolexic Technologies, Inc. announced on Monday that the two companies have signed a definitive agreement for Akamai to acquire Prolexic, a provider of cloud-based security solutions for protecting data centers and enterprise IP applications from distributed denial of service (DDoS) attacks. Tom Leighton, CEO of Akamai, said, "By joining forces with Prolexic, we intend to combine Akamai's leading security and performance platform with Prolexic's highly-regarded DDoS mitigation solutions for data center and enterprise applications protection. We believe that Prolexic's solutions and team will help us achieve our goal of making the Internet fast, reliable, and secure." Faced with an ever-changing threat landscape, organizations require comprehensive security solutions that address many different protection scenarios. These include secu... (more)

Facebook Plays Short and Long Game with WhatsApp and Oculus Rift | Part 1

When Facebook decided to invest a cool $19 billion ($16 billion upfront) for messaging app WhatsApp the entire world was bound to take notice. Telecommunications types, in particular, were keen to understand how this latest move would impact them as mobile operators have been feeling the heat from over the top (OTT) players like Google and Facebook for years. (To put this $19 billion in perspective, AT&T, one of the world's largest telecom carriers, invests about $20 billion in networks and spectrum in an entire year.) Shortly thereafter, in another surprise move and with the dust not quite settled on WhatsApp, Facebook picked up virtual reality startup Oculus Rift for $2 billion. This left many in the industry wondering what exactly was going on. While WhatsApp and Facebook's previous acquisition of Instagram for $1 billion were in keeping with its social network r... (more)

What's Next for Oracle?

Watching Larry Ellison and Oracle over the years as it has morphed itself is a real study in market dynamics.  It's transformation from database company through middleware provider to now being a "cloud computing pioneer" is simply amazing. The only question now seems to be "What's next?". The image below dipicts the company's recent mergers and acquisitions. Stephen Jannise, ERP Market Analyst at Software Advice, wants to know your prediction of  Oracle's next move.  Participate in the survey and read more by going to: http://www.softwareadvice.com/articles/enterprise/oracle-mergers-acquisitions-whos-next-1080310/ As one of the leading software providers to the government marketplace, this next move could be interesting. ( Thank you. If you enjoyed this article, get free updates by email or RSS - KLJ ) Follow me at http://Twitter.com/Kevin_Jackson ... (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)

Intel Acquires Leading Client Virtualization Vendor Neocleus - Or Does It?

Intel has reportedly acquired the market leader in client virtualization, Neocleus. Known for its NeoSphere product. Neocleus is well known for its implementation of industry-leading virtualization technologies, coupled with centralized control and management that integrate with existing PC lifecycle management tools. NeoSphere has long offered organizations a way to address their client computing demands. At this writing however a question-mark hangs over the acquisition. The blog entry in which it was announced has disappeared from the Web! Here is what is returned today, Friday September 3 when anyone currently hits the URL of this blog posting at The Neocleus Blog: Yet Thursday September 2 the entry was available to all via Google News: As can be seen from the above Google search, the original blog post was apparently authored by Neocleus's VP of Product Management, ... (more)

HP Buying ArcSight for $1.5b

HP confirmed Monday morning that it means to buy ArcSight, the 10-year-old anti-hacking house, for $43.50 a share or around $1.5 billion all told, a 24% premium for a company that it reputedly wanted to buy for $800 million a couple of years ago before it went public. Since the unconfirmed report in the Wall Street Journal Sunday afternoon suggested an auction, the punters bid ArcSight's stock price up over the $43.50 HP said it's going to pay, hoping for a repeat of the 3PAR run-up. The Journal said it heard ArcSight was shopping itself around to a bunch of big technology companies and looking for $42 a share. It was at $28 on August 26 when the paper first reported it was for sale and closed Friday at $35.10. During an early morning conference call Bill Veghte, the ex-Microsoftee now running HP's software unit, refused to speculate on the chance of another bidder c... (more)

IBM Buys Netezza

IBM said Monday morning that it's buying Netezza, the data warehouse appliance company that competes with Oracle's vaunted Exadata widgetry, for roughly $1.78 billion net of Netezza's bank book. IBM timed the announcement to coincide with Oracle's OpenWorld festivities which are just getting off the ground. It said it would pay $27 a share cash, close to a 10% premium, modest compared to the recent HP-3PAR deal. Wall Street evidently thinks IBM's bid may be challenged like Dell's was for 3PAR because the punters, probably thinking of Oracle, immediately bid Netezza's stock up over $27 on the news. IBM, on the other hand, expects the acquisition to close in Q4. Oracle has been lording Exadata over IBM in ads on the front page of the Wall Street Journal claiming "Sun runs Oracle twice as fast as IBM's fastest computer" and putting up $10 million for anyone - including I... (more)

Novell Sale May Fall Through: Reuters

It’s unlikely that anybody in the industry needs three anonymous Reuters sources to tell them that NetWare has been the donkey on the bridge holding up the sale of Novell for lo the six months the company’s been in play. Everybody has known for years and years that that thing has been an albatross around Novell’s neck. Heck, if Novell had been able to solve its NetWare problem it wouldn’t have bought SUSE Linux. Anyway, Reuters says that Novell can’t get whatever ridiculous price it’s demanding for the little bloodsucker and that if it can’t unload the thing at its valuation it may abort the sale of SUSE and stay independent, or IPO a division, or something. It doesn’t want to sell off SUSE to VMware or CA or whoever else has come a calling and be left there with NetWare in its hand. Reuters identified Los Angeles-based Platinum Equity as having tired of the “onerous... (more)