Buzz
1. Microsoft Acquires Nuance
On March 4th, Microsoft completed the acquisition of Nuance Communications, a developer of AI-driven conversational technologies and intelligence used across industries such as healthcare, finance, retail, and telecommunications. The acquisition of Nuance's voice recognition technology enables Microsoft to deepen its presence in healthcare, offering advanced transcription and medical dictation tools widely used in hospitals. This marks Microsoft's second-largest acquisition, following its $26 billion LinkedIn purchase in 2016.
2. Vista Equity Partners and Evergreen Coast Capital Acquire Citrix Systems
On January 31st, confirming months of circulating rumors, Citrix Systems announced that it had reached a deal to be acquired by Vista Equity Partners and Evergreen Coast Capital (a subsidiary of Elliott Investment Management) in an all-cash transaction valued at $16.5 billion. Citrix, a provider of digital workspace solutions, virtualization systems, and application delivery services, will later merge with Tibco Software, a Vista-owned developer of software for data management, integration, and analytics since 2014.
While the companies initially aimed to finalize the acquisition by mid-year, the deal is still pending. Citrix will retain its name and headquarters in Ft. Lauderdale, Florida. The merger of Citrix and Tibco is expected to deliver secure applications, critical information, and insights to accelerate digital transformation and navigate hybrid work models for customers.
While the companies initially aimed to finalize the acquisition by mid-year, the deal is still pending. Citrix will retain its name and headquarters in Ft. Lauderdale, Florida. The merger of Citrix and Tibco is expected to deliver secure applications, critical information, and insights to accelerate digital transformation and navigate hybrid work models for customers.
3. Kaseya Acquires Datto Ignites
Kaseya, a developer of IT management tools used by businesses and MSPs, made waves in the MSP space on April 11th with the announcement of an all-cash deal to acquire its rival Datto for $6.2 billion. The merger of two of the largest MSP-focused platform providers is expected to intensify competition with rivals like ConnectWise and N-able in areas such as remote monitoring and management, security, and professional services.
Kaseya's CEO presented the acquisition as a way to offer their global customers "more integrated, innovative, and powerful solutions." Datto's CEO stated that the deal brings together a broader range of technology products, creating new opportunities for MSPs. However, the acquisition has sparked controversy, raising concerns about the impact on Datto's employees and its MSP-focused culture. A disapproving emoji posted three days after the announcement by an executive at a security tech provider set off a social media storm, including sarcastic remarks about Kaseya.
Kaseya's CEO presented the acquisition as a way to offer their global customers "more integrated, innovative, and powerful solutions." Datto's CEO stated that the deal brings together a broader range of technology products, creating new opportunities for MSPs. However, the acquisition has sparked controversy, raising concerns about the impact on Datto's employees and its MSP-focused culture. A disapproving emoji posted three days after the announcement by an executive at a security tech provider set off a social media storm, including sarcastic remarks about Kaseya.
4. Intel Acquires Israeli Chipmaker Tower Semiconductor
As part of Intel's long-term strategy, "IDM 2.0", which focuses on expanding production capabilities, the company has reached an agreement to acquire Israeli chip manufacturer Tower Semiconductor for $5.4 billion in February. This move is aimed at significantly boosting Intel's chip manufacturing capacity for other companies through its Intel Foundry Services.
Tower Semiconductor operates a network of chip production facilities that will complement Intel's existing factories in the U.S. and Asia. In addition to expanding production capabilities, Intel will gain access to Tower's specialized technology portfolio, which includes radio frequency, power, silicon-germanium, and industrial sensors. Intel will also benefit from Tower's extensive electronic design automation partnerships and intellectual property. The acquisition is expected to be completed by early 2023.
Tower Semiconductor operates a network of chip production facilities that will complement Intel's existing factories in the U.S. and Asia. In addition to expanding production capabilities, Intel will gain access to Tower's specialized technology portfolio, which includes radio frequency, power, silicon-germanium, and industrial sensors. Intel will also benefit from Tower's extensive electronic design automation partnerships and intellectual property. The acquisition is expected to be completed by early 2023.
5. Google Acquires Mandiant
The cybersecurity sector in the tech industry has seen several mergers and acquisitions this year, including Cloudflare's $162 million acquisition of Area 1 Security and Thoma Bravo's privatization of Ping Identity for $2.8 billion. However, one of the most significant IT security deals this year was Google's move to acquire incident response technology developer Mandiant for $5.4 billion, which is viewed as a direct challenge to Microsoft and Amazon Web Services. (Microsoft was reportedly considering a bid for Mandiant prior to Google's deal.)
The acquisition of Mandiant will greatly enhance Google's cybersecurity capabilities in incident response and real-time threat intelligence. The deal comes just four months after Mandiant sold its network, endpoint, and email security business to Symphony Technology Group for $1.2 billion. The transaction, which is expected to close by the end of the year, was cleared by the U.S. Department of Justice after concluding its antitrust investigation without opposition in July.
The acquisition of Mandiant will greatly enhance Google's cybersecurity capabilities in incident response and real-time threat intelligence. The deal comes just four months after Mandiant sold its network, endpoint, and email security business to Symphony Technology Group for $1.2 billion. The transaction, which is expected to close by the end of the year, was cleared by the U.S. Department of Justice after concluding its antitrust investigation without opposition in July.
6. HP Acquires Poly
On March 28, HP Inc., a leading provider of PCs, laptops, and printers, made a significant announcement regarding its acquisition of Poly, a global supplier of video conferencing hardware, conference phones, and headsets, for $3.3 billion. HP's acquisition aims to expand its product portfolio for hybrid work solutions. The COVID-19 pandemic forced millions to work from home for over two years, and many businesses and organizations have adopted hybrid work models where employees split their time between home and the office.
This shift has driven increased demand for IT products and services, including personal computing devices and collaboration, communication, and video conferencing software. HP's acquisition of Poly is expected to provide its channel partners with an expanded portfolio of hybrid work solutions. HP expects to finalize the acquisition of Poly by the end of this year.
This shift has driven increased demand for IT products and services, including personal computing devices and collaboration, communication, and video conferencing software. HP's acquisition of Poly is expected to provide its channel partners with an expanded portfolio of hybrid work solutions. HP expects to finalize the acquisition of Poly by the end of this year.
7. AMD Acquires Pensando
On April 4, the semiconductor giant AMD announced its acquisition of Pensando, a leading edge startup in edge computing, for $1.9 billion. Pensando, founded by a group of former Cisco engineers, has drawn significant attention since its inception in 2017, with strong backing from former Cisco CEO John Chambers. The company raised $313 million in venture capital.
With the deal finalized on May 26, AMD revealed that Pensando's distributed services platform will complement its data center portfolio by adding high-performance data processors and software stacks. The founders and employees of Pensando have now joined AMD's Data Center Solutions Team.
With the deal finalized on May 26, AMD revealed that Pensando's distributed services platform will complement its data center portfolio by adding high-performance data processors and software stacks. The founders and employees of Pensando have now joined AMD's Data Center Solutions Team.
8. Broadcom Acquires VMware
On May 26, Broadcom, the $27 billion semiconductor and software infrastructure giant, announced it would acquire virtualization leader VMware in a deal valued at $61 billion, consisting of cash and stock. The announcement confirmed earlier reports of ongoing acquisition talks.
The acquisition follows just under seven months after VMware, a company majority-owned by Dell Technologies since 2016, became an independent, publicly traded entity. A 40-day window for VMware to explore other acquisition offers ended in early July without any competing bids. The deal is expected to close during Broadcom's fiscal year 2023, which began on November 1, 2022.
Broadcom plans to integrate VMware's software portfolio with its own, including technologies from its previous acquisitions such as Brocade Communications Systems, CA Technologies, and the enterprise security business of Symantec. The company has also committed to further investments in VMware's partners, engineering, and sales teams, according to Broadcom Software Group President Tom Krause in a recent blog post.
The acquisition follows just under seven months after VMware, a company majority-owned by Dell Technologies since 2016, became an independent, publicly traded entity. A 40-day window for VMware to explore other acquisition offers ended in early July without any competing bids. The deal is expected to close during Broadcom's fiscal year 2023, which began on November 1, 2022.
Broadcom plans to integrate VMware's software portfolio with its own, including technologies from its previous acquisitions such as Brocade Communications Systems, CA Technologies, and the enterprise security business of Symantec. The company has also committed to further investments in VMware's partners, engineering, and sales teams, according to Broadcom Software Group President Tom Krause in a recent blog post.
9. AMD Completes Acquisition of Xilinx
On February 14, chipmaker AMD finalized its acquisition of Xilinx, expanding its portfolio beyond its core CPU and GPU offerings to include programmable chips known as Field-Programmable Gate Arrays (FPGAs). This acquisition is set to significantly enhance AMD’s opportunities in data centers, embedded computing, and telecommunications. Xilinx also has a strong presence in other sectors such as defense, broadcasting, and consumer electronics.
As a result, the acquisition has increased AMD’s total addressable market to $135 billion, up from $80 billion, according to the company. The initial deal, announced in October 2020, was valued at $35 billion. However, AMD's double-digit stock growth since then pushed the final deal price to $49 billion, making it the largest acquisition in semiconductor history. Xilinx's common stock will no longer be traded on the NASDAQ.
As a result, the acquisition has increased AMD’s total addressable market to $135 billion, up from $80 billion, according to the company. The initial deal, announced in October 2020, was valued at $35 billion. However, AMD's double-digit stock growth since then pushed the final deal price to $49 billion, making it the largest acquisition in semiconductor history. Xilinx's common stock will no longer be traded on the NASDAQ.
10. Oracle Completes Acquisition of Cerner
On June 7, Oracle successfully completed its $28.3 billion acquisition of Cerner, a leading developer of digital healthcare information systems. This move significantly strengthens Oracle’s position in the healthcare IT market. The acquisition, first announced in December 2021, saw Oracle, based in Austin, Texas, obtaining approval from both shareholders and regulators during the first half of 2022. Cerner now operates as a business unit within Oracle.
Oracle, already active in the healthcare sector with a diverse product portfolio, plans to modernize Cerner's electronic health record software using Oracle’s Autonomous Database, low-code development tools like Apex, and voice-enabled digital assistants. According to solution providers, the healthcare sector has been a strong vertical for Oracle, and integrating Cerner’s technology will enhance Oracle’s capabilities in healthcare data analytics and AI.
Oracle, already active in the healthcare sector with a diverse product portfolio, plans to modernize Cerner's electronic health record software using Oracle’s Autonomous Database, low-code development tools like Apex, and voice-enabled digital assistants. According to solution providers, the healthcare sector has been a strong vertical for Oracle, and integrating Cerner’s technology will enhance Oracle’s capabilities in healthcare data analytics and AI.
