Mergers and Acquisitions in the technology industry

M&A News in Technology

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"This acquisition marks a significant step forward in our investment in the success of OpenStack," wrote OpenStack's GM Jim Curry Wednesday as he confirmed that Rackspace has acquired Anso Labs, best known for its work with NASA to help build their Nebula cloud platform, the code behind which NASA contributed to the open source community as the basis for OpenStack Compute last summer. "We believe OpenStack is the right cloud operating system for the industry, and we are committed to the continued evolution of this open platform and to powering our own cloud with OpenStack for many years to come," Curry added. Since Anso Labs is a participant in the OpenStack project and has already contributed substantially to its success, it further underlines how strongly Rackspace believes the world needs a truly open cloud platform and is committed to helping build it. Curry wa... (more)

Dell Tops HP's Bid for 3PAR – Just Barely

If nothing else, HP Thursday morning made Dell's proposed acquisition of 3PAR more expensive. That was when Dell sweetened HP's unexpected $24-a-share bid on Monday for the virtualized storage house by 30 cents to $1.53 billion, up from the $1.15 billion that 3PAR accepted from Dell last week. HP now has to decide whether to raise again, a move that would presumably be conditioned on getting any advance to stick. See, Dell's got perpetual matching rights. Anyway, Dell says 3PAR has accepted its amended offer and that if the obscure little company walks away this time it's going to cost its suitor $72 million, up from the $53.5 million termination fee in their original agreement. HP and Dell are chasing the unprofitable $200 million-a-year 3PAR for its cloud potential. Wall Street evidently expects HP to counter because at $26 and change 3PAR's stock price remain... (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)

Why Didn’t I Start Salesforce.com?

Between 1991 and 1994 I worked for the French company Rhône-Poulenc in its U.S. headquarters in Cranbury, New Jersey. Rhône-Poulenc is the biggest French company in the world and is owned by the French government. During those three years I designed, coded and delivered a state-of-the-art salesforce automation system for the company, with a support team of five. We spent roughly $2 million on hardware but the company saved an estimated $11 million in outside consulting fees. The best bid for the job would take roughly five years to complete and would have been inferior to what we developed. And it probably would never have made it out in five years anyway. With a five-year project, requirements change, and if the requirements remain the same then the people change. So a consulting company awarded such a contract gets paid but doesn't necessarily need to deliver the g... (more)

New Owner of Novell Might Be Cloud Expo Sponsor VMware

Who is buying Novell? The Wall Street Journal is reporting that VMware is in talks to acquire Novell's Linux software unit. Novell, adds the Journal, is in "advanced talks with at least two buyers." VMware's primary interest would be in purchasing Novell's SUSE Linux operating system business, experts agree. What experts don't agree on is whether or not SUSE Linux would be in the best hands, were VMware to be its new custodian. Self-declared "Cyber Cynic" Steve Vaughan-Nichols, for example, notes the irony that the CEO of VMware is none other than an ex-Microsoftie, Paul Maritz (pictured). So is the fox about to be put in charge of the hen-house? Gartner VP Chris Wolf says "I think acquiring a mainstream Linux distro makes sense for VMware" and notes: "If VMware acquires Novell SUSE Linux, it will have a vertical offering much like Microsoft, Oracle, and Red Hat. Lar... (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)

Software AG Acquires Terracotta

"Both Terracotta and Software AG are committed to further investment in our technologies and preserving the vibrant open source communities of Ehcache and Quartz," said Amit Pandey, CEO of Terracotta, as it was announced today in San Francisco, USA & Darmstadt, Germany, that Software AG has entered into a definitive agreement to acquire Terracotta Inc. "The combination of Software AG and Terracotta will provide enormous value to customers of both companies through a comprehensive software stack that supports the level of performance and scale required in private and public cloud infrastructures," added Pandey. The acquisition, explained Software AG in an announcement, will allow it to provide innovative cloud solutions and dramatically increase the performance and scalability of its Business Process Excellence platform. The announcement continued: "Terracotta’s pro... (more)

EMC to Acquire @Virtustream | @CloudExpo @EMCcorp [#DevOps #Containers #Microservices]

EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC's new managed cloud services business. The acquisition represents a transformational element of EMC's strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry's most comprehensive hybrid cloud portfolio to support all applications, all workloads and all cloud models. Virtustream CEO Rodney Rogers will report to Joe Tucci, EMC Chairman and CEO. "Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry's fastest-growing and most important sectors," said Joe Tucci. "With Virtustream in place, EMC will be uniquely positioned as a single source for our... (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)

Will Oracle Bid for HP?

"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)

HP & IBM Vie over Next Billion-Dollar Acquisition: Radware

IBM and HP are competing for the hand of Israeli-based smart networking developer Radware whose acquisition will go down for close to a billion dollars according to Globes, the Israeli business paper whose inevitably unnamed and chatty sources are usually on the money. Both IBM and HP are partners of the 14-year-old public company. Globes expects Radware to get knocked down for $45 a share working out to a total of $945 million, a 60% premium. Oddly enough IBM CEO Sam Palmisano Tuesday publicly scoffed at the premiums HP has been paying lately for 3PAR and now ArcSight claiming that it’s only because its internal innovation impulses have been starved by its penny-pinching ousted CEO whereas IBM’s own R&D budget is fat and sassy. Globes quotes Oppenheimer as speculating the other day that Radware could get bought for its IP when it raised its price target to 30 bucks. ... (more)