Latest Channel M&A: Broadcom-VMware, Microsoft, Bluewave, Thoma Bravo, More
Setbacks for some proposed acquisitions while tech advisors (agents) increase their tie-ups.
January 13, 2023
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In December, Hewlett Packard Enterprise (HPE) was interested in taking over cloud computing/hyperconverged infrastructure company Nutanix.
According to sources, HPE held talks with Nutanix in recent months. The “talks between the companies have been on and off and it’s unclear whether they will be able to reach an agreement over price,” says Bloomberg.
The Wall Street Journal said back in October that Nutanix was actively looking at potential buyers. At this point, Nutanix could decide to stay independent or go with another buyer.
However, a recent report suggests HPE’s interest has waned.
Read more of our reporting here.
The Microsoft-Activision Blizzard deal suffered a setback in December, with the Federal Trade Commission’s lawsuit seeking to block it. The FTC’s complaint promises to delay the proposed acquisition, but Microsoft is confident it will prevail.
At the beginning of this year, the two companies agreed for Microsoft to acquire Activision Blizzard for $69 billion. If the deal is completed, it would be the largest-ever acquisition in the gaming industry. But the combined companies would still only be the third largest player behind Tencent and Sony, Microsoft has contended.
Learn why Microsoft refutes the gaming dominance claim.
Massachusetts-based technology advisory firms ROI Communications, Blue Front Technology Group and allConnex have joined forces under one banner as Amplix.
The three agencies have agreed to a merger backed by Gemspring Capital Management. The deal creates a combined agency that its leaders describe as one of the largest partners in the U.S. Amplix CEO and former ROI Communications CEO Joe DeStefano tells Channel Futures that the firm will corner the New England market as it cross-sells into its existing customer bases and expands into new accounts across the country.
Find out who purchased a majority interest in the company.
Bluewave Technology Group continued its inorganic growth by buying Ohio-based technology advisor firm Compass Solutions.
Compass, headquartered in Cuyahoga Falls, Ohio, brings expertise in large retail and manufacturing customers to Bluewave. It also expands Bluewave’s client base to more than 4,000.
Moreover, all indications are that both entities emphasize deeper technology life cycle management than the average agent.
Bluewave group has also joined forces with Helm Partners, one of the agent channel’s largest technology advisor firms.
The transaction brings together two of the bigger players on the East Coast. Pennsylvania-based Helm has deep enterprise consulting expertise as well as a strong cloud communications skill set.
Bluewave isn’t saying how much it’s paying for Helm.
Get more here and here regarding the background of the deals.
Bridgepointe Technologies has acquired customer experience (CX) and contact center consultancy PPT Solutions. This expands Bridgepointe’s vision of providing end-to-end advisory and life cycle management services to end customers.
The deal gives Bridgepointe’s roster of IT strategists deeper consulting expertise in contact-center-as-a-service (CCaaS) customer engagements. On the other hand, PPT can tap into Bridgepointe’s deep customer base of midmarket and enterprise clients.
“The main thing for them is the opportunity to expand those services into a customer base that we know is already ripe for it,” Bridgepointe chief strategy officer Scott Kinka told Channel Futures here.
The European Commission has begun its in-depth investigation into Broadcom’s proposed $61 billion acquisition of VMware, addressing a number of competition concerns.
The Commission is particularly concerned that the transaction would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware’s software.
The Commission is the competition branch of the European Union.
In addition, the Commission will examine whether Broadcom may hinder the development of SmartNICs by other providers. In 2020, VMware launched Project Monterey with three SmartNICs sellers, Nvidia, Intel and AMD Pensando.
Broadcom may decrease VMware’s involvement in Project Monterey to protect its own NICs revenues. This could hamper innovation to the detriment of customers, the Commission said.
Learn more about Broadcom’s response to the Commission.
Applied Tech and Platte River Networks have merged to become, in their words, an “MSP superpower” throughout Wisconsin, the Denver metropolitan area and across the U.S. Both companies were on the 2022 MSP 501 list, with Applied Tech at No. 243, and Platte River at No. 68. Platte River Networks will adopt the Applied Tech brand in early 2023.
The combined company will boast key short- and long-term gains for employees, customers and prospects.
Both companies have been serving customers for more than 20 years. The combined talent of the two companies will bring greater specialization and technology expertise. It will also deliver the resources needed for growth-minded businesses both locally and nationally.
Learn more here.
Software investment firm Thoma Bravo is buying Coupa Software, a provider in business spend management, for $8 billion.
For more than a decade, Coupa Software cemented its position as a market-leading platform in its category, said Rob Bernshteyn. He’s chairman and CEO at Coupa.
“We’re looking forward to partnering with Thoma Bravo and accelerating our vision to digitally transform the office of the CFO,” Bernshteyn said. “While our ownership may change, our values do not. Every one of us at Coupa will continue to put our customers at the center of everything we do and help them maximize the value of every dollar they spend.”
Read more about the future of product strategy and M&A growth for the company.
Park Place Technologies will do more for and with its partners via its latest acquisition from CentricsIT, an IT services provider based in Atlanta, Georgia. It acquired the company’s professional services and third-party maintenance (TPM) assets.
This is the company’s (No. 226 on the 2022 MSP 501) fourth acquisition this year and its third consecutive acquisition in the Greater Atlanta Region. Park Place Technologies didn’t disclose financial details of the acquisition.
Park Place Technologies’ professional services offering will include greater capabilities in install, move, add and change (IMAC) services, IT asset disposition (ITAD), remote hands and deployment services. Those include cabling, Wi-Fi surveys, data center installs and refreshes, and network installations.
Discover here how Park Place gains stable TPM business with potential for growth.
Ziply Fiber is acquiring iFIBER Communications, a provider of high-speed fiber internet services in partnership with local PUDs in western, central and eastern Washington. iFIBER’s primary offerings are fiber internet and digital phone solutions for residential customers.
Once the acquisition is complete, Ziply will deliver fiber internet service through an indefinite right of use with each partner PUD and customers will benefit from expanded service hours, access to new products such as hosted voice, whole home Wi-Fi and improved network management capabilities.
Across the four northwest states, Ziply Fiber has announced new fiber construction projects in more than 90 cities and towns across the Northwest since it began its aggressive fiber expansion efforts in the summer of 2020.
Ziply Fiber is acquiring iFIBER Communications, a provider of high-speed fiber internet services in partnership with local PUDs in western, central and eastern Washington. iFIBER’s primary offerings are fiber internet and digital phone solutions for residential customers.
Once the acquisition is complete, Ziply will deliver fiber internet service through an indefinite right of use with each partner PUD and customers will benefit from expanded service hours, access to new products such as hosted voice, whole home Wi-Fi and improved network management capabilities.
Across the four northwest states, Ziply Fiber has announced new fiber construction projects in more than 90 cities and towns across the Northwest since it began its aggressive fiber expansion efforts in the summer of 2020.
One might think December would be a slow month for the M&A activity within the channel. In total, there weren’t a significant number of tech deals with channel impact. That said, the mergers and acquisitions that did occur – and the ones that are pending – are noteworthy for their size and scope.
Take the FTC lawsuit seeking to block the Microsoft-Activision Blizzard deal. Microsoft officials say they are confident the company will prevail. If so, it would be the largest-ever acquisition in gaming history. Our reporting goes into why Microsoft refutes the FTC’s gaming dominance claim.
What’s also in limbo? HPE was interested in taking over cloud computing/hyperconverged infrastructure company Nutanix. That’s what we reported on in December. However, recent reports suggest HPE’s interest has waned.
On a completely different note, sometimes a deal is like a party. Several companies – well, three to be exact – were on the invite list to merge, creating Massachusetts-based technology advisory firm Amplix. Read our roundup to find out which of the three organizations purchased a majority interest in the new firm.
In addition, if you didn’t catch our previous M&A gallery, you can find it here.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Claudia Adrien or connect with her on LinkedIn. |
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