Mergers and Acquisitions in the technology industry

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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)

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)

CA Technologies to Acquire ITKO for $330 Million

CA Technologies on Wednesday announced a definitive agreement to acquire privately-held Interactive TKO, Inc. (ITKO), a provider of service simulation solutions for developing applications in composite and cloud environments, for $330 million in an all-cash transaction. According to David Dobson, executive vice president, Customer Solutions Group, CA Technologies, "The addition of ITKO to CA Technologies will extend our ability to deliver a complete set of capabilities to help our customers and partners to increase their adoption and value from cloud-based applications." Business demand for rapid time-to-market and lower operational costs is driving IT organizations to quickly adopt new approaches such as composite application architectures and cloud services. As the quest for quickly delivering high-quality business services continues, IT management - from automa... (more)

SAP Acquires Syclo - A First Analysis Over Coffee

WARNING!  These are Kevin Benedict's personal thoughts and opinions pondered over a cup of my favorite coffee shop's bowl of soul on the outdoor patio in the warm spring sunshine of Boise, Idaho. My first thought when I received the news that SAP is acquiring Syclo, was, "Smart move SAP!" I respect the fact that SAP is willing to double down on enterprise mobility.  I also respect the fact that SAP is willing to brave the inevitable criticism for having bought the same solution twice.   SAP has smart leaders.  They have made an aggressive and brave decision with this acquisition.  I think they recognized an unmet need, estimated the impact, valued the market and fixed it.  I am sure this was not an easy decision.  It will raise many questions, but I am sure it will make Sapphire 2012 even more interesting (perhaps even more than Van Halen in concert). SAP has doubled ... (more)

OpenText Buys GXS

OpenText Corporation has announced that it has completed its acquisition of GXS Group, Inc. (GXS), expanding OpenText's leadership in EIM by combining OpenText's Information Exchange portfolio with GXS's cloud-based business-to-business integration services and managed services. "I am delighted to welcome GXS customers, partners, trading community and employees to OpenText," said OpenText CEO Mark J. Barrenechea. "We are committed to leading Enterprise Information Management with the market's best products and cloud-based services. Our combined cloud will now manage over 16 billion transactions per year, approximately 600,000 trading partners and 40,000 customers." About GXS Leading provider of B2B Integration Services B2B integration market segment is estimated to be $5 billion by 2016 (Gartner, Competitive Landscape: Integration Brokerage Published: 26 November 2... (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)

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)

Cisco to Acquire Arch Rock

Cisco on Thursday announced its intent to acquire privately held Arch Rock Corporation, a pioneer in Internet Protocol-based wireless network technology for smart-grid applications. Based in San Francisco, Arch Rock will accelerate Cisco's ability to facilitate the utility industry's transition to an open and interoperable smart grid by enabling Cisco to offer a comprehensive and highly secure advanced metering infrastructure solution that is fully IP and open-standards based. "Arch Rock's wireless mesh technology enhances Cisco's IP-based, end-to-end smart-grid offerings," said Laura Ipsen, senior vice president and general manager of Cisco's Smart Grid business unit. "This acquisition further positions Cisco as a strategic partner to utilities working to better manage power supply and demand, improve the security and reliability of energy delivery, and optimize ... (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)

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)