The technology world is always evolving, with startups springing up in new product categories. As new businesses disrupt well-established companies, well-known organizations are merging to stay on top of the food chain.
M&A activities in the tech space can be quite disruptive as companies strategically sunset essential technologies, and introduce new offerings to the market. CEOs need to take advantage of upcoming opportunities to future-proof their organizations. Mergers and acquisitions allow tech companies to inject new blood into their business and guarantee continuity.
Whereas many are acquiring companies, others are selling. Here are the B2B tech companies that are currently selling.
Even with disruptive technologies emerging every year, mainframes have always remained at the heart of many businesses. This fact, as well as the need for modernization, fueled the merger of BMC and Compuware in March 2020.
BMC’s Automated Mainframe Intelligence (AMI) and Compuware’s vast product range is a perfect match. Enterprises can now have mainframes as part of their strategies thanks to this merger.
The last time Compuware changed hands was in 2014, and it went for $2.4 billion. It was a buyout by Thomas Bravo, a private equity firm. BMC has not announced how much it paid for Compuware in March.
2. Cincinnati Bell
In December 2019, Cincinnati Bell was to sell to Brookfield Infrastructure Partners for $2.6 billion. However, Cincinnati Bell got a better offer from Macquarie Infrastructure in 2020.
There was a short bidding war in March, which ended with Cincinnati Bell breaking off their initial engagement with Brookfield Infrastructure Partners.
For enterprises that are banking on Cincinnati Bell’s upgrade and the 5G rollout, this played out in their favor. Had the company gone to Brookfield Infrastructure Partner, the ambitious fiber upgrade would have likely not happened. The rejected suitor focuses on creating a steady revenue stream from minimal maintenance capital expenditure.
3. Decision Resources
Decision Resources sold to data vendor, Clarivate in March 2020. The data-based company closed the deal at $950 million.
In January, Clarivate had announced its intent to acquire Decisions Resources from Piramal Enterprises Limited. As a company specializing in gathering information about patents, trademarks, industrial standards, and scientific research, Decisions Resources is a worthy purchase.
Vlocity has been one of Salesforce’s biggest cheerleader for the longest time. It builds industry-specific software on top of Salesforce for government, communications, insurance, health, utility, and media companies.
Salesforce’s acquisition of Vlocity is geared towards reinforcing its vertical market offering. This is a huge step that began in September 2019. It allows Salesforce to add manufacturing and customer goods to their portfolio.
In addition to this acquisition, Salesforce is also reshaping its executive setup as former chairman, Gavin Patterson assumes CEO position. The $1.33 billion deal is expected to close in 2021.
Company mergers and acquisitions in the digital space are reshaping well-established companies. If you’re looking to sell your business, be sure to consult us for expert M&A expert assistance. Closing deals require the input of professional intermediaries with experience in your respective industry.