Archivo de la categoría: M&A

Frank van der Post, IS Group, Kpn, M&A, News & Analysis, Telco Cloud

KPN acquires cloud provider IS Group

KPN has acquired IS Group, a Dutch cloud service provider

KPN has acquired IS Group, a Dutch cloud service provider

KPN has acquired IS Group, a large Dutch hosting and cloud services provider, for an undisclosed sum. The operator said the move will help bolster its business solutions portfolio.

Founded in 1996, IS Group offers managed cloud services and virtual desktop solutions to businesses in the Netherlands.

The company only operates datacentres in the Netherlands and claims annual revenues of roughly €25m, KPN’s primary market, and although the Dutch operator already offers some cloud services to enterprises it said the acquisition would allow it to expand its managed hosting capabilities with services like cloud-based workspaces for SMEs.

“Our business customers are increasingly asking for cloud-based services to support their growth,” Frank van der PostKPN has acquired IS Group, a large Dutch hosting and cloud services provider, for an undisclosed sum. The operator said the move will help bolster its business solutions portfolio., chief operating officer of KPN. “Together with IS Group we will be better able to service our customers in their transition to the cloud, with solutions that increase efficiency and flexibility, while allowing for rapid scalability.”

The move fits with KPN’s broader strategy of divesting its operations in other European markets – Belgium and Germany – to build out a broader portfolio of services in its home market of the Netherlands. The company has been fairly proactive at bolstering its cloud cred at the same time.

Last year KPN joined the Cloud Team Alliance, a partnership inked between Belgian telco Belgacom and Numergy, a French cloud computing specialist, which enables participating organisations to extend the coverage of their cloud services by sharing networks and technical resources that help each operator optimise their network architectures for cloud computing. Earlier this year the company also joined the newly formed Dutch Datacentre Association (DDA), which represents close to two thirds of the local datacentre and cloud sector.

Atos, M&A, Managed services, Michel-Alain Proch, News & Analysis, outsourcing, Thierry Breton, Xerox

Atos completes acquisition of Xerox’s IT outsourcing biz

Atos has finalised the acquisition of Xerox's outsourcing business

Atos has finalised the acquisition of Xerox’s outsourcing business

French IT services outfit Atos announced this week the company has completed its €811m acquisition of Xerox’s IT outsourcing business, a move the companies said would give the combined entity a massive leap forward in the outsourcing market.

Originally announced on the tail end of last year Atos and Xerox agreed to a net total acquisition price of $966m (€ 811m), composed of $950m and an additional $50m assuming certain performance metrics were hit, plus $100m representing the estimated value of future tax benefits to Atos.

Xerox’s ITO business includes about 9,800 employees in 45 countries, with most – 4,500 – based in the US and more than 3,800 in global delivery countries.

Atos said the move, which gives it some strong capabilities in business process outsource and document outsourcing, means North America becomes its largest segment. While the company is popular in the Europe and the UK it’s currently ranked number 9 in North America in terms of outsourcing revenue.

“Today marks a major step in the development of the Atos Group, as we welcome 9,600 Xerox ITO employees to Atos,” said Thierry Breton, Chairman and chief executive of Atos. “With the US now our largest market, we have a stronger and more balanced global presence, which combined with our digital skills, allows us to be the trusted partner for our clients’ digital journey anywhere in the world.”

The companies also announced a deal that would see Atos become one of Xerox’s primary IT service providers globally.

Michel-Alain Proch, group senior executive vice president and recently appointed chief executive of Atos’s North American operations added: “Together with Xerox teams, we have worked extensively to be ready from day one post-closing and we are now fully operational to ensure continued delivery of services to our clients while at the same time leveraging the combined strengths of the two groups for profitable growth.”

Cisco, David Goeckeler, Hilton Romanski, Internet of Things, IoT, M&A, News & Analysis, OpenDNS

Cisco to acquire OpenDNS to strengthen cloud security for IoT

Cisco plans to acquire OpenDNS for $635m

Cisco plans to acquire OpenDNS for $635m

Cisco is to acquire cloud-based network security provider OpenDNS for $635m.

OpenDNS’ offering combines DNS services with a managed network security service that tracks devices and traffic and helps mitigate malware or denial of service threats. But it also adds predictive intelligence capabilities by using big data analytics to metabolise real-time behaviour and machine learning algorithms to automate mitigating action.

Cisco said the acquisition would strengthen security services portfolio, a core element of its Internet of Things (IoT) strategy.

“As more people, processes, data and things become connected, opportunities for security breaches and malicious threats grow exponentially when away from secure enterprise networks,” said Hilton Romanski, Cisco chief technology and strategy officer.

“OpenDNS has a strong team with deep security expertise and key technology that complements Cisco’s security vision. Together, we will help customers protect their extended network wherever the user is and regardless of the device.”

As part of the deal, which is expected to close sometime in the first quarter of next year, the OpenDNS team will join the Cisco Security Business Group led by David Goeckeler, the division’s vice president and general manager.

Targeting the network has become an increasingly important component of enterprise IT security, particularly with the explosion of malware and denial of service attacks – and will continue growing in importance as the IoT brings vast volumes of automated connectivity and data transaction.

The trend has seen more emphasis place on cloud-based security services, which can act as a security perimeter without needing to install anything with a datacentre. According to Gartner, the cloud-based security market with grow from $2.1bn in 2013 to $3.bn this year.

Barracuda Networks, Brivo, Dean Drako, Eagle Eye Networks, M&A, News & Analysis, video surveillance

Eagle Eye Networks CEO Dean Drako acquires cloud access firm for $50m

Eagle Eye's CEO and former Barracuda Networks president is buying a cloud access and control company for $50m

Eagle Eye’s CEO and former Barracuda Networks president is buying a cloud access and control company for $50m

Dean Drako, president and chief executive of Eagle Eye Networks and former Barracuda Networks president has wholly acquired Brivo, a cloud access control firm, for $50m.

Brivo said its cloud-based access control system, a centralised management and security system for video surveillance cameras, currently services over 6 million users and 100,000 access points.

The acquisition will give Eagle Eye, a specialist in cloud-based video surveillance technology, a flexible access control tool to couple with its current offerings, Drako said.

“My goal was to acquire the physical security industry’s best access control system,” Drako explained.

“Brivo’s true cloud architecture and open API approach put it a generation ahead of other access control systems. Cloud solutions provide exceptional benefits and Brivo is clearly the market and technology leader. Brivo is also committed to strong, long-standing relationships with its channel partners, which I believe is the best strategy for delivering extremely high customer satisfaction.”

Though Eagle Eye will remain autonomous from Brivo, Drako will serve as the company’s chairman; Steve Van Till, Brivo’s president and chief executive, will continue serving in this capacity.

He said Eagle Eye will work to integrate Brivo’s flagship solution, Brivo OnAir, with its cloud security camera system, which will help deliver video verification and natively viewable and searchable video.

“We are extremely excited that Dean Drako has acquired Brivo and is serving as chairman. In addition to Dean’s experience founding and leading Barracuda Networks to be a multi-billion dollar company, he has grown his latest company, Eagle Eye Networks, to be the technology leader in cloud video surveillance,” Van Till said.

“We both share the vision of delivering the tremendous advantages of cloud-based systems to our customers,” he added.

BlueStripeMicrosoft, M&A, Mike Neil, News & Analysis

Microsoft buys BlueStripe to bolster hybrid cloud monitoring

BlueStripe will bolster Microsoft' hybrid cloud performance monitoring capabilities

BlueStripe will bolster Microsoft’ hybrid cloud performance monitoring capabilities

Microsoft has acquired BlueStripe, a vendor of infrastructure monitoring solutions for applications distributed across multiple datacentres and cloud platforms.

BlueStripe and Microsoft have worked together closely over the years and the company’s solutions are often used to extend Microsoft System Centre for application infrastructure performance monitoring on a combination of Microsoft and non-Microsoft stacks.

Microsoft said the acquisition would give a strong boost to its hybrid cloud strategy.

“More and more, businesses are turning to applications to drive innovation and gain competitive advantage. To support this explosion of applications, agile cloud development environments and more componentized architectures and micro-services are growing exponentially. Applications and data are being spread across on-premises datacentres and public, private and hosted clouds as a result. While IT teams may not operate all of the infrastructure where the applications run, they still require visibility and the ability to manage these applications in order to support and protect the business,” explained Mike Neil, general manager of enterprise cloud at Microsoft.

“BlueStripe’s enterprise-class solution enables IT professionals to move from monitoring IT at the infrastructure level to gaining visibility into applications at the transaction level. The technology discovers and maps applications and dependencies, pinpoints problems for faster resolution, and helps maintain SLAs across complex underlying infrastructure. By mapping the structure of distributed applications, BlueStripe also helps in the process of updating applications to more modern platforms and migrating to the cloud.”

Microsoft said it will integrate BlueStripe’s solution into its infrastructure and ops management offerings like System Center and Operations Management Suite (OMS), but as part of the acquisition BlueStripe will cease selling its solution in the near term.

The challenge with application monitoring is it has always implied a tradeoff between flexibility and granularity. That said, BlueStripe’s FactFinder offering could give Microsoft – a strong proponent of hybrid cloud – a big boost with enterprises looking to extend their Microsoft stacks for application deployments or vice versa.

Big Data, Jignesh Patel, M&A, News & Analysis, Pivotal, Quickstep Technologies, Relational database, Sundeep Madra

Pivotal buys Quickstep Technologies in big data play

Pivotal is acquiring Quickstep Technologies to boost SQL performance

Pivotal is acquiring Quickstep Technologies to boost SQL performance

Pivotal has acquired Quickstep Technologies, a query execution technology developer, for an undisclosed sum. The company said the move could vastly improve the performance of its big data solutions.

Quickstep’s technology was developed at the University of Wisconsin-Madison by Jignesh Patel, professor of computer sciences and a team of developers at the school, in part with funding from the US National Science Foundation. It’s a relational data processing engine that incorporates a technology called Bitweaving, which uses various techniques to reduce the number of cycles to evaluate and compute a predicate across a batch of code, the result being a massive improvement in performance when asking a database a question.

Patel is no stranger to the database space. His thesis work was commercialised by NCR when it was acquired by Teradata, and he also co-founded Locomatix, a startup that designed a platform to power real-time data-driven mobile services, which became part of Twitter two years ago.

“In the Quickstep project we have rethought from the ground up the algorithms that make up the DNA of data platforms so that the platform can deliver unprecedented speed for data analytics. It is time to move our ideas from research to actual products,” Patel said. “There is no better home for this technology than at Pivotal given Pivotal’s formidable track record in delivering real value to their customers in big data.”

Pivotal said the technology will be integrated as a new query execution framework for Greenplum Database and Pivotal HAWQ, which it claims will “provide orders of magnitude increase in performance for advanced analytics, machine learning, and advanced data science use cases.”

Sundeep Madra, vice president, data product group, Pivotal said: “Enterprises are seeking ever faster speeds for their data so that they can affect outcomes in real time. Quickstep brings to Pivotal a fresh way of thinking about data, one aligned to new capabilities in hardware and demanding expectations today’s businesses have. We look forward to bringing this technology to our customers, and welcome the Quickstep team to the Pivotal family.”

Angus MacSween, Consulting, Europe, Infrastructure as a Service, iomart, M&A, News & Analysis, Peter Burgess, SystemsUp

iomart buys cloud consultancy for SystemsUp for £12.5

iomart is buying IT consultancy SystemsUp for an estimate £12.5m

iomart is buying IT consultancy SystemsUp for an estimate £12.5m

UK cloud service provider iomart announced it has entered into a deal to acquire IT consultancy SystemsUp, which specialises in designing and delivering cloud solutions, for up to £12.5m.

The deal will see iomart pay £9m in an initial cash consideration for the London-based consultancy with a contingent consideration of up to £3.5m depending on performance.

iomart said the move would broaden its cloud computing expertise. SystemsUp designs and delivers solutions made to run on Google, AWS and Microsoft public clouds among other platforms, and specialises in the public sector cloud strategies.

“The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace,” said Angus MacSween, chief executive of iomart. “With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organisations wanting to create the right blend of cloud services, both public and private, to fit their requirements.”

While iomart offers its own cloud services the company seems to recognise the need to build up skills in a range of other platforms; the company said SystemsUp will remain an “impartial, agnostic, expert consultancy.”

Peter Burgess, managing director of SystemsUp said: “We have already built up a significant reputation and expertise in helping organisations use public cloud to drive down IT costs and improve efficiency. As part of iomart we can leverage their award winning managed services offerings to deepen and widen our toolset to deliver a broader set of cloud services, alongside continuing to deliver the strategic advice and deployment of complex large public and private sector cloud projects.”

The move comes six months after iomart’s last acquisition, when the company announced it had bought ServerSpace, a rival cloud service provider, for £4.25m.

Altera, Brian Krzanich, Intel, Internet of Things, IoT, John Daane, M&A, News & Analysis

Intel joins IoT M&A frenzy with $17bn Altera acquisition

Intel is buying Altera for $17bn to strengthen its position in IoT

Intel is buying Altera for $17bn to strengthen its position in IoT

Chip giant Intel has wasted little time in joining the recent flurry of semiconductor M&A activity by acquiring embedded chip company Altera for $16.7 billion, reports Telecoms.com.

Altera specialises FPGAs (field-programmable gate arrays), which essentially are chips that can be reconfigured, making them useful for dynamic embedded environments such as software defined radio and whatever the Internet of Things eventually serves up. Intel believes this kind of technology can help it in the embedded space, where it often struggles to compete with more power efficient ARM-based products.

“With this acquisition, we will harness the power of Moore’s Law to make the next generation of solutions not just better, but able to do more,” said Brian Krzanich, CEO of Intel. “Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs. This is the promise of Moore’s Law and it’s the innovation enabled by Intel and Altera joining forces.”

“We believe that as part of Intel we will be able to develop innovative FPGAs and system-on-chips for our customers in all market segments,” said John Daane, President, CEO of Altera. “Together, we expect to drive meaningful value for our customers, partners and employees around the world.”

Intel has been getting serious about IoT for some time, especially when it became apparent how difficult getting into the smartphone market would be for it. Back in 2009 it bought embedded software company Wind River and it has recently broken out its IoT activities into a distinct reporting unit. Together with other acquisitions, such as cellular modem company Infineon, Intel is amassing a portfolio of silicon capabilities that could be combined into some highly versatile chips – just what you need when looking to future proof your embedded technology.

Datacentre, Equinix, John Hughes, M&A, News & Analysis, Stephen Smith, TelecityGroup

Equinix, Telecity reach merger agreement as Interxion gets kicked to the curb

Equinix and Telecity Group are merging, which will boost Equinix's presence in the EU

Equinix and Telecity Group are merging, which will stregthen Equinix’s presence in the EU

Equinix and TelecityGroup have agreed the terms of a merger that will see the American datacentre incumbent pay $2.35bn for all issued Telecity shares.  The deal also means the proposed merger between Telecity and Interxion is dead in the water.

Under the terms of the merger each Telecity shareholder will be entitled to receive £5.72 for each share and 0.0327 new Equinix shares. Following the merger’s completion Telecity shareholders will hold just over 10 per cent of the shares in the combined group.

John Hughes, executive chairman of the board of TelecityGroup will also be joining the Equinix board.

“On behalf of the Board of TelecityGroup, I am very pleased to recommend the combination of TelecityGroup and Equinix to our shareholders today. Having carefully considered all our options, the Board believes this is a compelling offer and an excellent outcome for shareholders, employees and customers,” Hughes said.

“Through this transaction, our customers will have new global opportunities for their connected datacentre requirements.  The combination of Equinix and TelecityGroup services and people will ensure the expanded business leads the way in the provision of highly-connected data centre services for customers in Europe and all over the world.”

Stephen Smith, chief executive officer and president of Equinix said TelecityGroup will “considerably strengthen” its current offerings in Europe and help reinforce its position in the interconnection business.

“The transaction will allow Equinix to benefit from increased scale and extend the global reach of our platform. We believe our offer is compelling to TelecityGroup shareholders who will realise significant value for their holdings while having the opportunity to participate in the future strengths of the combined business,” Smith said.

“We are especially pleased to be welcoming John Hughes onto the Board of the combined business and will greatly benefit from his experience in the technology space,” he added.

The move also means that the proposed merger between TelecityGroup and Interxion is dead. When news broke of the merger talks earlier this month Equinix’s board called Interxion out, claiming an Equinix merger would be more beneficial from the perspective of shareholders.

If the merger is approved TelecityGroup will give Equinix a stronger presence in the UK and extend its footprint into new locations with identified cloud and interconnection needs including Dublin, Helsinki, Istanbul, Milan, Stockholm and Warsaw, something Equinix is clearly willing to splurge on. Telecity’s market cap when news of the potential merger originally broke earlier this month stood at £1.4bn, so Equinix is paying a premium of around £950m.

Avago, Broadcom, Chris Taylor, Hock Tan, Internet of Things, IoT, M&A, News & Analysis, Strategy Analytics

Avago buys Broadcom for $37bn to create IoT chip dream team

Avago is buying Broadcom for $37bn to create an IoT giant

Avago is buying Broadcom for $37bn to create an IoT giant

It seems every corner of the mobile market is consolidating right now and semiconductors are clearly no exception, with digital signal processing chip maker Avago acquiring communications chip company Broadcom for $37bn, reports Telecoms.com.

Avago was spun off from Agilent Technologies back in 2005, which was itself spun off from HP in 1999, leading to what was at the time the world’s largest IPO. It has a broad portfolio of semiconductor products and is strong in mixed-signal circuits and sensors. Broadcom has long been a leader in communications technologies such as ethernet, wifi and Bluetooth.

“Today’s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago’s heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry,” said Hock Tan, president and chief executive of Avago. “The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors. Avago has established a strong track record of successfully integrating companies onto its platform.”

“This transaction benefits all of Broadcom’s key stakeholders,” said Scott McGregor, president and chief executive of Broadcom. “Our customers will gain access to a greater breadth of technology and product capability. For our shareholders, the transaction provides both compelling up-front value as well as the opportunity to participate in the future upside of the combined business.”

In practice the combination of Avago’s strength in sensors and Broadcom’s in communications looks like a potential IoT dream team, creating the ability to offer unified IoT chips that do everything you could ask of a connected thing.

Chris Taylor, analyst at Strategy Analytics, told explained that Avago’s other strengths include RF power amplifiers and filters. “Their most notable success has been in Apple phones over the past several years with their multi-mode, multi-band power amplifiers,” he said. Taylor also noted their success in RF filters for LTE bands above 1.9 GHz, which are likely to be used more extensively as more capacity is needed.

A similar move was recently announced by NXP and Freescale, which are merging to form a semi company with strengths in NFC, automotive and microcontrollers, and which NXP announced today it would be selling off its RF Power business to fund. Both of these merged companies must compete with mobile chip leader Qualcomm, which acquired wifi chip giant Atheros back in 2011. It will be interesting to see if there’s a response to all this M&A from Asian chip players such as Mediatek.