Latest M&A: Telarus, Kaseya, Avant, Nitel, Corel, Broadcom, More
In one multibillion-dollar deal, the company being acquired will get to retain its brand.
July 14, 2022
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In June, Telarus bought TCG. The companies say the deal creates the largest technology solutions brokerage in the world. That’s based on new monthly bookings and revenue. The deal strengthens Telarus’ footprint on the East Coast and gives it access to TCG’s loyal sales partner base.
Although most major deals are rarely without its critics, this one seemed to have partner support. Jay Morris, president and CEO of MOReCOMM, said that the acquisition surprised many in the channel, but it could tap into clear synergies between the two companies.
“I look at this like ‘a little bit of country and a little bit of rock and roll.’ We all scratched our heads a bit when Blake Shelton and Gwen Stefani got together, but it turned out to be a marriage made in heaven,” Morris told Channel Futures.
He pointed to the geographical fit between Florida-based TCG and Utah-based Telarus.
“TCG has a strong East/Southeast presence. However, the West Coast has always been a tough nut for them to crack, while Telarus is extremely strong in the West,” he said.
To read more from James Anderson’s coverage, go here, here and here.
It is one of the biggest acquisition stories of the year so far. Kaseya bought Datto in an all-cash transaction valued at $6.2 billion. But it hasn’t been without controversy. Some MSPs wonder whether the amount of M&A activity in the channel will stifle innovation and diversity.
In response, CEO Fred Voccola told Channel Futures: “Human beings: you me, everyone, we don’t like change. And when change comes, there’s always fear, doubt and uncertainty. So, rule No. 1 [is] to eliminate fear, doubt and uncertainty with overcommunication.”
But that sentiment didn’t seem to settle partners. Terry Suellentrop is CEO of 3Nines Technologies.
“For partners, it means that we are seeing the beginning of the end of vendors working together and supporting each other’s products. What motivation will Kaseya have to continue to support, long term, other players such as ConnectWise? What value is ConnectWise going to have in supporting Kaseya that currently has two competing PSA products? Partners won’t be able to choose best-of-breed products that all integrate. We will be forced to choose a vendor that has the ‘best’ overall product suite with less integration between those other vendors. Overall, it won’t be good for a partner like us who wants to be able to pick and choose the best of breed. That will be more and more difficult to manage.”
To learn more about the deal and its aftermath, link here, here and here.
Massive doesn’t begin to describe the $61 billion landmark Broadcom-VMware deal. Chipmaker Broadcom announced the acquisition of VMware in May, expanding the depth of critical infrastructure solutions both companies can provide to enterprise customers. VMware will keep its brand, incorporating the assets from the Broadcom Software Group. Broadcom has bought several software companies over the last five years, including Symantec and CA Technologies.
David Bicknell, principal analyst at GlobalData, expressed the sentiment some analysts have shared: Many of Broadcom’s past acquisitions ended in a dismal outcome for the purchasee.
For example, the layoffs at Brocade, which Broadcom bought in 2017, ultimately surpassed 1,100. And that’s not the only instance of mass staff reduction.
“VMware should take heed of Symantec and CA Technologies’ experiences following their acquisition by Broadcom. CA Technologies reportedly saw a 40% reduction in U.S. headcount, and employee termination costs were also high at Symantec.”
To read our further coverage of the deal, go to here, here and here.
Avant announced in May that it is buying PlanetOne in a landmark deal for the technology advisory space. The deal marks one of the last independently held tech services distributors (formerly master agents) to agree to an acquisition or private equity investment. The merger expands the presence of Avant in the western U.S. Most partners have offered a largely favorable response to the transaction.
To review more of our coverage of the deal, link here and here.
In May, Unitas Global acquired the INAP network business in a deal that expands its expertise and customer base. The deal brings together INAP’s intelligent routing software, Unitas’ design and pricing platform, and Unitas’ global network. INAP now functions as a strategic Unitas Global customer. Virginia-based INAP will still offer connectivity, colocation and cloud solutions, leveraging Unitas’ recently signed PacketFabric partnership.
Learn more about the background of the deal here.
Park Place Technologies has acquired 21 companies since 2016, including its most recent purchase of Atlanta-based Riverstone Technology. The acquisition will provide more products and services to Riverstone Technology’s client base. Those include automated monitoring and a portfolio of managed services.
Read more from Edward Gately’s story here.
Zendesk was bought by a group led by global investment firms Permira and Hellman & Friedman for a whopping $10.2 billion, an all-cash deal. The Zendesk acquisition will take the company private.
Mikkel Svane, Zendesk’s founder, chairman and CEO, said the acquisition is the start of a new chapter “with partners that are aligned with the strength of our agile products and talented team, and are committed to providing the resources and expertise to continue our growth trajectory.”
Thrive is on a buying spree with four MSP acquisitions this year, including two in June. Last month it purchased DSM, a Florida-based provider of managed IT services to government agencies. This signified Thrive’s further expansion in the Sunshine State as the firm already owned an MSP in south Florida. Just six days after the DSM acquisition, Thrive announced it was buying Connecticut-based Edge Technology Group. Edge is an IT service provider for alternative investment managers.
Read more of our coverage here and here.
Chicago-based Nitel is buying Texas-based Hypercore Networks. Nitel is expanding its network-as-a-service and cybersecurity offerings as well as its international capabilities.
“Our goal is to grow the business aggressively to expand our service footprint and product lines,” Nitel’s CEO Margi Shaw told hannel Futures.
Software Company Corel has acquired Awingu, a provider of secure remote access technology. The companies did not disclose the dollar amount of the acquisition. Awingu will continue to deliver secure remote workspaces for customers, including those in health care, finance, manufacturing, government and telco verticals.
Read more about the acquisition here.
ReliaQuest has dropped a cool $160 million for Digital Shadows, which delivers threat intelligence for security teams. The acquisition combines ReliaQuest’s ability to extend detection and response across cloud, network and endpoint environments with Digital Shadows’ digital risk and threat intelligence technology. The companies said they will make security operations more effective.
Find out more about their security operations.
Lookout has acquired SaferPass, a password management company. By adding password management technology to its suite of security solutions, Lookout will deliver proactive protection and safeguard customer data for individuals and businesses. The company didn’t say how much it’s paying for SaferPass.
Read more about the acquisition here.
Lookout has acquired SaferPass, a password management company. By adding password management technology to its suite of security solutions, Lookout will deliver proactive protection and safeguard customer data for individuals and businesses. The company didn’t say how much it’s paying for SaferPass.
Read more about the acquisition here.
There were many mergers and acquisitions in May and June, but which of the latest M&A news stood out? We’ve answered that question with a dozen deals that made their mark. See the slideshow above.
Despite economic concerns, there were two multibillion-dollar acquisitions in the channel during this period. Once the dust settled on those deals, the critiques came out of their hiding spots. For one of the acquisitions, analysts worry that there may be significant layoffs as a result. This assessment was made based on the acquiring company’s prior deal in which more than 1,000 workers were let go. For the other multibillion-dollar acquisition, one with a smaller price tag, the concern surrounds whether the purchase is a cultural fit in the MSP space.
Speaking of MSPs, we feature one company that has acquired four MSPs in the first half of this year alone. The shopping spree has lead to the company’s geographic expansion in South Florida, among other locales.
Lastly, we report on a deal that creates the largest technology solutions brokerage in the world. Some are alluding it’s a marriage made in heaven.
Also, 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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