Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Archive for the ‘acquisitions’ Category

A Foldable Phone

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Happy Monday.

We have ourselves another weekend-announced tech deal, this time SAP announcing that it would purchase survey-software provider Qualtrics for $8 billion in cash.

Axios reports that "this would be the largest-ever purchase of a VC-backed enterprise software company" and "the third-largest sale of any SaaS company (behind Oracle buying NetSuite for $9.3B, and SAP buying Concur for $8.3B).

AP CEO Bill McDermott said in a conference call that the Qualtrics IPO was already over-subscribed, and that this deal will be as transformative for SAP as buying Instagram was for Facebook — with SAP being able to merge its massive trove of operational data with Qualtrics’ collection of user experience data.

Meanwhile, if you’ve been keeping an eye on that nifty-looking foldable Galaxy F smartphone, Yonhap News Agency is reporting that it will launch in March, "along with a fifth-generation (5G) network-powered Galaxy S10."

Yonhap reports that the eagerly anticipated foldable smartphone is expected to launch at the Mobile World Congress in February, but that it is not expected to support 5G. So all that folding will have to transpire on existing 4G networks.

Hey, a slower folding phone is better than no folding phone, right?

And if you’ve already started that Christmas shopping binge, looking for the latest and greatest gaming console, you might want to hit "pause" just long enough to read this effort from The Wall Street Journal’s Sarah Needleman.

She writes that tech giants are "trying to bring videogames the same streaming capabilities that gave rise to Netflix and Spotify," which could potentially do an end around traditional gaming consoles.

I wouldn’t short the X-Box or Playstation just yet, but there is the possibility those consoles will have to reinvent themselves to stay up to speed with the Jones’s…errr, I meant to say, the Streamers.

Written by turbotodd

November 12, 2018 at 12:22 pm

Apple Chips

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How about that rough stock market ride yesterday?

All I have to say about that is that it’s October (check your stock market history).

But yesterday’s steep selloff hasn’t stopped deals from happening.

TechCrunch is reporting that Apple will buy a part of Dialog Semiconductor, a chipmaker based out of unit, for $300 million in cash and a commitment of another $300 in further purchases from the company.

While Dialog is describing this as an asset transfer and licensing deal, it will be Apple’s biggest acquisition by far in terms of people: 300 people will be joining Apple as part of it, or about 16 percent of Dialog’s total workforce. From what we understand, those who are joining have already been working tightly with Apple up to now. The teams joining are based across Livorno in Italy, Swindon in England, and Nabern and Neuaubing in Germany, near Munich, where Apple already has an operation.

TechCrunch suggests this deal is part of a continued emphasis on Apple’s "putting considerable effort into building faster and more efficient chips that can help differentiate its hardware from the rest of the consumer Electronics pack….and comes at a time when many expect Apple to release a VR headset in the future."

Dialog says post the acquisition, the remaining part of the business will focus more on IoT, as well as mobile, automotive, computing and storage markets, specifically as a provider of custom and configurable mixed-signal integrated circuit chips.

Written by turbotodd

October 11, 2018 at 9:55 am

Adobe To Buy Marketo

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TechCrunch reported late yesterday that Adobe is buying marketing automation company Marketo for $4.75 billion:

“The acquisition of Marketo  widens Adobe’s lead in customer experience across B2C and B2B and puts Adobe Experience Cloud at the heart of all marketing,” Brad Rencher, executive vice president and general manager, Digital Experience at Adobe said in a statement.

Adobe’s press release had this to say about the deal:

Adobe (Nasdaq:ADBE) today announced it has entered into a definitive agreement to acquire Marketo, the market-leading cloud platform for B2B marketing engagement, for $4.75 billion, subject to customary purchase price adjustments. With nearly 5,000 customers, Marketo brings together planning, engagement and measurement capabilities into an integrated B2B marketing platform. Adding Marketo’s engagement platform to Adobe Experience Cloud will enable Adobe to offer an unrivaled set of solutions for delivering transformative customer experiences across industries and companies of all sizes.

Marketo’s platform is feature-rich and cloud-native with significant opportunities for integration across Adobe Experience Cloud. Enterprises of all sizes across industries rely on Marketo’s marketing applications to drive engagement and customer loyalty. Marketo’s ecosystem includes over 500 partners and an engaged marketing community with over 65,000 members.

This acquisition brings together the richness of Adobe Experience Cloud analytics, content, personalization, advertising and commerce capabilities with Marketo’s lead management and account-based marketing technology to provide B2B companies with the ability to create, manage and execute marketing engagement at scale.

And why marketeers should care, according to Marketing Land:

Adobe’s Creative Cloud services has long been part of the marketing industry standard for creating and managing media-rich assets. Now with the addition of Marketo’s B2B marketing automation platform, Adobe will be able to deliver a full-scale marketing solution, allowing marketers — and their marketing technology teams — to unify costs within a single layer of their martech stack.

Written by turbotodd

September 21, 2018 at 11:20 am

Broadcom to Acquire CA

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Today is apparently a big deal day. Pun intended.

But before I launch into that, let me just send out my congrats to both France and Croatia, both of whom won their respective matches against Belgium and the UK this week to go on to the World Cup Finals on Sunday in Moscow.

There’s been a lot of talk about American viewership being down for the World Cup due to the American men’s team not making the tournament.

Tell that to all the Austin bars and restaurants I saw jam packed with fans watching a whole slew of games (and clearly not all of them were expats). There’s plenty of American soccer fans who grew up playing and loving the sport, and for whom the World Cup is a soccer Superbowl on steroids.  I’m one of them, and I’ll be glued to the TV on Sunday to see if David can beat Goliath.

Now back to the deals…Broadcom has announced it will acquire IT management software company CA Technologies for $18.9 billion in cash, according to a report from CNBC.

From the statement issued by Broadcom:

Broadcom Inc. (NASDAQ: AVGO), a leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, and CA Technologies (NASDAQ: CA), one of the world’s leading providers of information technology (IT) management software and solutions, today announced that the companies have entered into a definitive agreement under which Broadcom has agreed to acquire CA to build one of the world’s leading infrastructure technology companies.

Hock Tan, President and Chief Executive Officer of Broadcom, said, ‘This transaction represents an important building block as we create one of the world’s leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions.’

But ZDNet’s Larry Dignan writes that “few investors and analysts are buying it,” suggesting it has overtones of Intel’s own failed software adventures (Wind River, McAfee…)

Macquarie Capital analyst Srini Pajjuri is quoted in the ZDNet story saying that:

History suggests that combining Semi and unrelated Software businesses is risky (Intel + McAfee). Cisco has had success transitioning from a hardware-only model to a recurring revenue model, but in Cisco’s case, software is typically bundled with its hardware solutions, which is different from the Broadcom + CA model.

Written by turbotodd

July 12, 2018 at 10:52 am

Posted in 2018, acquisitions

Tagged with , ,

Broadcom Sweetens Qualcomm Offer

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Reuters is reporting that Broadcom Ltd. sweetened its bid to buy Qualcomm Inc. for more than $121 billion, its “best and final offer.”

If the deal were to go through, it would be the largest in tech history, writes Reuters.

Qualcomm indicated it would review the revised proposal and will have no further comment on it until the board completes its review. In November, Qualcomm had rejected the original $103 billion bid as  undervaluing the company.

Singapore-based Broadcom is known for its connectivity chips used in products ranging from mobile phones to servers and Qualcomm provides chips to mobile carrier networks to deliver broadband and data – a business that will benefit significantly due to the roll out of 5G wireless technology.

Written by turbotodd

February 5, 2018 at 9:56 am

Chinese Expansion

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While everybody freaks out about the Meltdown and Spectre microprocessor exposures, life goes on in much of the tech world.

Well, sort of.

TechCrunch reported yesterday that the U.S. Government has blocked the proposed acquisition of global payment service MoneyGram by Alibaba’s Ant Financial.

This is the second China-led acquisition of a U.S. tech company that has “failed” during U.S. President Trump’s tenure. The first was last September when a private equity group was blocked from purchasing Lattice Semiconductor due to “potential security risks.”

Here’s the background from TechCrunch:

Ant Financial, the Alibaba affiliate which controls Alipay — China’s top mobile wallet — and other financial services, announced a deal to buy Nasdaq-listed MoneyGram in April 2017 after it beat off a rival bid from Euronet. Ant initially bid for MoneyGram in January 2017 as a means to develop its cross-border payment network into the U.S., and major corridors including India and the Philippines, but instead it will “explore and develop initiatives” to collaborate with MoneyGram’s business.
– via TechCrunch

The article goes on to suggest that “the collapse of the deal is a huge blow to Ant, which spent much of 2017 developing its mobile payment network beyond China and into Southeast Asia, India, Korea, Japan and other parts of Asia with a series of partnerships and investments.”

As Confucius said, “Everything has beauty, but not everyone sees it.” That includes Uncle Sam.

On the other hand, nothing’s stopping the Chinese in Brazil!

SiliconANGLE reported that the Chinese ride-hailing firm, Didi Chuxing, bought Brazilian car booking service 99 Corp. yesterday for some $600M.

99 is Brazil’s version of Uber, writes SiliconANGLE, and has some 300,000 drivers and 14 million users in 400 cities across Brazil.

The deal is notable not only as a major acquisition in a large marketplace but also because it marks the beginning of Didi Chuxing’s international expansion. The Chinese giant was first reported to be expanding into Mexico in December with a ground-up strategy as opposed to an acquisition. Its global ambitions were finally laid bare when it said Dec. 21 that its latest round would in part be dedicated to its international expansion. The other takeaway from the deal is that Didi Chuxing is willing to acquire companies it has previously invested in, meaning there’s a swath of companies on Didi’s radar. To date, Didi is a large investor in Southeast Asia’s GrabTaxi Holdings Pte. Ltd. and India’s Ola (ANI Technologies Pvt. Ltd.), with smaller investments in Eastern Europe-focused Taxify OU, the Middle East’s Careem and last but certainly not least Lyft Inc., Uber’s largest rival in the United States.
– via SiliconANGLE

Et tu, Uber?

Written by turbotodd

January 4, 2018 at 12:04 pm

Posted in 2018, acquisitions, china, uber

CVS to Buy Aetna in $69 Billion Deal

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CVS Health said on Sunday that it had agreed to buy Aetna for about $69 billion, in a deal that would combine the drugstore with one of the biggest health insurers in the United States, according to a report from The New York Times.

The merger comes at a time of turbulent transformation in health care. Insurers, hospitals and pharmacy companies are bracing for a possible disruption in government programs like Medicare as a result of the Republicans’ plan to cut taxes. Congress remains at an impasse over the future of the Affordable Care Act, while employers and consumers are struggling under the weight of rising medical costs, including the soaring price of prescription drugs. And rapid changes in technology have raised the specter of new competitors — most notably Amazon. A combined CVS-Aetna could position itself as a formidable figure in this changing landscape. Together, the companies touch most of the basic health services that people regularly use, providing an opportunity to benefit consumers. CVS operates a chain of pharmacies and retail clinics that could be used by Aetna to provide care directly to patients, while the merged company could be better able to offer employers one-stop shopping for health insurance for their workers.
– via www.nytimes.com

 

But as the Times goes on to observe, critics worry customers could find their healthcare choices sharply limited (i.e., less choice of where to fill a prescription or get care if so many roads lead through a combined CVS/Aetna.

But in the announcement, the companies pointed out clear synergies that would benefit patients:

the two companies emphasized their ability to transform CVS’s 10,000 pharmacy and clinic locations into community-based sites of care that would be far less expensive for patients. “We think of it as creating a new front door to health care in America,” CVS Health’s chief executive, Larry J. Merlo, said in an interview. The merger would establish a new way of delivering care, with nurses, pharmacists and others available to counsel people about their diabetes or do the lab work necessary to diagnose a condition, Mr. Merlo said. “We know we can make health care more affordable and less expensive.”
– via www.nytimes.com

Looming in the background, the Times observes, a lingering Amazon and Jeff Bezos, rumored to be preparing for an entry into the pharmacy business.

As to antitrust considerations, both companies played down the prospect of regulation, arguing that the takeover is a “vertical merger” combining companies in two different industries.

Written by turbotodd

December 4, 2017 at 9:21 am

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