Latest M&A: Mindtree 'Takeover,' IBM Assuring Red Hat Employees
Not everyone is happy about IT industry consolidation.
![EY39s Global Technology MampA 2Q2015 report revealed that mergers and acquisitions deals reached 1272 billion in the second EY39s Global Technology MampA 2Q2015 report revealed that mergers and acquisitions deals reached 1272 billion in the second](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/bltb47475f1f407b93b/6524360328ff125fae81d63a/Mergers-and-Acquisitions-Insurance-1011_0.jpg?width=700&auto=webp&quality=80&disable=upscale)
EY's Global Technology M&A 2Q2015 report revealed that mergers and acquisitions deals reached $127.2 billion in the second quarter of this year, higher than any quarter since 2000. The IoT, big data and mobility fueled M&A value and growth during the quarter, according to EY.
Google Cloud will buy file storage vendor Elastifile.
Elastifile’s portfolio will integrate into Google Cloud Filestore managed service later this year. The purchase helps Google develop a “natively compatible storage option” to help customers migrate workloads to the cloud.
One analyst prompted consternation by suggesting that channel partners might see fewer storage opportunities as public cloud providers develop more in-house storage options.
Jeff Burt covered the deal.
Cisco is spending approximately $2.6 billion to purchase Acacia Communications, the manufacturer of optical interconnect products.
Acacia was already functioning as a Cisco supplier, but Cisco executives said buying the company helps build a foundation for intent-based network architectures. Acacia will enhance Cisco’s optical systems portfolio.
The transaction will likely wrap in the first half of 2020.
IBM reiterated last month that it has “no desire to meld” its culture with Red Hat’s.
IBM, which officially wrapped its $34 billion transaction on July 9, is assuring Red Hat stakeholders that the acquired company will be able to maintain its longstanding culture built around open-source software.
Red Hat’s executive vice president said his company has always had the goal of providing a “ubiquitous set of technologies and platforms across the enterprise.”
“I think today what we’ve seen and what we start on is that journey on steroids,” he said. “With IBM taking that forward, it will accelerate that journey for us in spades.”
Read our story about IBM and Red Hat.
The Jacksonville, Florida-based MSP expanded its geographical footprint with the purchase of GreenPoint Business Solutions.
GreenPoint’s New Jersey headquarters will give its buyer the required staffing and support to build a successful business in the Garden State.
“They have a very diverse set of clients here, so I am looking to leverage that,” CompassMSP’s CEO told us.
GreenPoint is CompassMSP’s third acquisition of 2019. TS Tech Enterprises and ITSM joined the fold earlier this year.
Maddie Bacon wrote about the acquisition.
Israel-based cloud security company SkyFormation will join Exabeam, the security information and event management (SIEM) provider.
Exabeam partners already could access the SkyFormation platform as a result of an OEM relationship between the two companies, but the transaction gives Exabeam an office in Israel and access to new talent.
The purchase came after SkyFormation wrapped a $75 million funding round.
Edward Gately covered the purchase in his security roundup.
Three major executives left their positions at the IT consulting firm as an Indian conglomerate acquired a controlling stake in the company.
Mindtree’s CEO, chairman and executive vice chairman followed through on their warning that Larsen & Toubro’s takeover of Mindtree represented a “grave threat.” They declared earlier this year that the acquisition would lead to no strategic advantage and would hurt shareholders.
The executives ceased to be Mindtree employees as of July 17.
Lynn Haber covered the drama.
We reported early in July that Connect Managed Services and G3 Comms will merge to become one of the United Kingdom’s largest UC managed service providers.
Apiary Capital, G3’s majority stakeholder, backed the detail, which is expected to create $69 million in annual revenue.
The joint company’s CEO said the two companies will collectively expand their skills base and product portfolios.
“The merger of G3 and Connect brings together two businesses with highly complementary capabilities which will enable our combined clients to derive significant benefits from the newly acquired skills provided by the enlarged team,” he said.
Read about the merger.
StorCentric announced its second acquisition in two weeks.
The latest target is on-volatile memory express (NVMe) flash storage provider Vexata. StorCentric executives said the acquisition gives partners and customers a wider portfolio and bundling opportunities. It followed StorCentric’s purchase of the backup software provider Retrospect.
An IT analyst said StorCentrix has reduced the “complexity of relationships” by bringing four product lines together.
Todd Weiss covered the news.
StorCentric announced its second acquisition in two weeks.
The latest target is on-volatile memory express (NVMe) flash storage provider Vexata. StorCentric executives said the acquisition gives partners and customers a wider portfolio and bundling opportunities. It followed StorCentric’s purchase of the backup software provider Retrospect.
An IT analyst said StorCentrix has reduced the “complexity of relationships” by bringing four product lines together.
Todd Weiss covered the news.
Not everyone is happy about IT industry consolidation.
We watched several Mindtree executives leave the consultancy firm in protest of acquisition they believe will harm the company. The controversy illustrates how mergers and acquisition balance more than just product portfolios and geographical footprints. Leaders must integrate cultures just as much as they are integrating goods and services.
For example, IBM is working to preserve Red Hat’s open source culture while combining the best of the two companies.
We covered Mindtree, IBM and six other big names in IT and cybersecurity in this recap of recent M&A. Take a stroll through the slideshow above.
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