Boss Insights - Tech M&A News - 15th January 2021

Cisco and Acacia Communications Announce Amended Merger Agreement
San Jose, California – 14th January 2021 - Cisco and Acacia Communications have announced an amendment to the definitive merger agreement under which Cisco previously agreed to acquire Acacia. Under the terms of the amended agreement, Cisco would acquire Acacia for $115 per share in cash, or for approximately $4.5 billion on a fully diluted basis, net of cash and marketable securities. Cisco and Acacia expect to complete the acquisition by the end of the first calendar quarter of 2021, subject to closing conditions, including Acacia stockholder approval. Upon completion of the acquisition, CEO Raj Shanmugaraj and Acacia employees will join Cisco’s Optics business. Chuck Robbins, chairman and CEO, Cisco, commented: “I am delighted that Cisco and Acacia have decided to come together in this mutual deal. We look forward to welcoming Raj and the Acacia team to Cisco to offer our customers world-class coherent optical solutions to power the Internet for the future.”

Qualcomm to Acquire NUVIA for $1.4 Billion
San Diego - 13th January 2021 - Qualcomm Incorporated (NASDAQ: QCOM) today announced that its subsidiary, Qualcomm Technologies, Inc., has entered into a definitive agreement to acquire NUVIA for approximately $1.4 billion before working capital and other adjustments. Cristiano Amon, President and CEO-Elect, Qualcomm Incorporated, commented: “5G, the convergence of computing and mobile architectures, and the expansion of mobile technologies into other industries are significant opportunities for Qualcomm. The NUVIA team are proven innovators, and like Qualcomm, have a strong heritage in creating leading technology and products. I am very excited to have them join our team. Together, we are very well positioned to redefine computing and enable our ecosystem of partners to drive innovation and deliver a new class of products and experiences for the 5G era.” As part of the transaction, NUVIA founders Gerard Williams III, Manu Gulati and John Bruno, and their employees will be joining Qualcomm.

Cognizant to Acquire Linium
Teaneck, New Jersey – 11th January 2021 - Cognizant has announced it has agreed to acquire Linium, a cloud transformation consultancy group, specializing in the ServiceNow platform and solutions for smart digital enterprise workflows. Linium helps Fortune 100 clients and others leverage cloud technology to improve operational efficiency and user experience. This transaction is Cognizant’s seventh cloud-related acquisition since January 2020. It will accelerate the company’s continued strategic investment in expanding capabilities in cloud, data and artificial intelligence, digital engineering, as well as the Internet of Things. Cognizant has accrued approximately $1.4 billion in acquisitions over the past 12 months in these areas. President, Digital Business and Technology, Cognizant, Malcolm Frank, commented: "Linium's specialized ServiceNow focus broadens Cognizant's enterprise service management capabilities while complementing our own longstanding ServiceNow alliance. Creating more agile workflows in the cloud is a priority for our clients, and together with Linium, we can now provide world-class, enterprise-wide ServiceNow expertise to customize workflows for customers and employees. We look forward to Linium's team joining Cognizant."

Google Completes Fitbit Acquisition
San Francisco, California - 14th January 2021 - Google has announced it has completed its acquisition of Fitbit. The deal was first announced back in November 2019 and it has been a long process, with personal data at the heart of regulatory concerns. Although some sources say the anti-trust investigations into the merger are continuing, in his announcement, Rick Osterloh, Senior Vice President, Devices & Services, claimed: “This deal has always been about devices, not data, and we’ve been clear since the beginning that we will protect Fitbit users’ privacy.” He explained that the company has worked with global regulators on safeguarding consumers' privacy expectations, which includes a series of binding commitments that confirm Fitbit users’ health and wellness data won't be used for Google ads and this data will be separated from other Google ads data.

Porch Group Announces Four Strategic Acquisitions and Expansion Into InsurTech
Seattle – 14th January 2021 - Porch Group, Inc, a vertical software company, reinventing the home services industry, is announcing four strategic acquisitions that strengthen the Company’s rapidly expanding platform for home service companies and homeowners. Homeowners of America (HOA), which has a business-to-business-to-consumer (B2B2C) revenue model with all revenues recurring. The acquisition aligns with Porch’s strategy of going deeper into the insurance value chain, and makes Porch one of the largest “InsurTech” companies. With the combined companies, Porch expects over $270 million of pro forma Gross Written Premium. V12 is a fully scaled Software-as-a-Service (SaaS) marketing and data platform with tools to help brands connect with and engage consumers at key purchasing decision points. The combination of Porch and V12 SaaS and data creates a unique and winning offering for brands. Porch also announced two smaller, equally strategic acquisitions of PalmTech and iRoofing. Both acquisitions are consistent with Porch’s strategy to go deeper into existing industries and expand its vertical software platform into new home service categories.

Investcorp Portfolio Company Calligo Acquires UK MSP Network Integrity Systems
St Helier, Jersey - 13th Jan 2021 - Investcorp has announced that its portfolio company, Calligo Holdings Limited, an end-to-end managed data services provider, has acquired Network Integrity Services (NIS), a UK-based IT managed services and technology-led solutions provider with locations in Manchester, Birmingham, Leicester and Hemel Hempstead. Gilbert Kamieniecky, Managing Director and Head of Investcorp’s Private Equity Technology business said: “We invested in Calligo because of its strong position in the highly attractive managed services and data privacy market. This latest acquisition reinforces our view that Calligo’s compelling offering and experienced management team will continue to deliver both organic and inorganic growth opportunities. We are delighted with how the talented team at Calligo has established the company as a global leader in the privacy-focused managed services market and continue to identify complementary acquisition targets in the current environment.”

Roku Acquires Quibi’s Global Content Distribution Rights
San Jose, California - 8th January 2021 – Roku, Inc has announced that The Roku Channel will become the exclusive place to stream more than 75 premium shows and documentaries that Quibi created in conjunction with Hollywood’s leading studios and production companies. Roku acquired the exclusive global distribution rights to Quibi’s award-winning shows and will make the content available for free on an ad-supported basis in 2021 to all Roku users. Rob Holmes, Vice President of Programming at Roku, commented: “The Roku Channel is one of the largest and fastest growing channels on our platform today and we are consistently expanding the breadth and quality of our free, ad-supported content for our users. Today’s announcement marks a rare opportunity to acquire compelling new original programming that features some of the biggest names in entertainment. We’re excited to make this content available for free to our users in The Roku Channel through an ad-supported model. We are also thrilled to welcome the incredible studios and talented individuals who brought these stories to life and showcase them to our tens of millions of viewers.”

Elisa and camLine Combine to Provide Global Data and AI-driven Intelligent Manufacturing Solutions
Helsinki, Finland & Petershausen, Germany - 12th January 2021 - Elisa and German-based industrial software provider, camLine Group, have signed an agreement in which Elisa acquires the camLine Group. The combination of two strong industrial software players with unique offering provides value for customers and speeds up growth in new markets. camLine is a software solution provider for the manufacturing industry with strong focus on MES, quality and operational excellence. The company has a global customer base, including semiconductor and electronics manufacturers, solar industry, advanced materials and medical devices. Joining forces speeds up camLine’s growth further by adding machine learning, artificial intelligence and 3D functionalities to its offering, as well as industrial software growth of both companies in the manufacturing industry by a more comprehensive product portfolio.

Snap acquires location data startup StreetCred 
New York - 11th January 2021 – Snap, parent of Snapchat, has acquired StreetCred, a New York City start up, which is creating a location data platform. As part of the deal, StreetCred’s platform will be shut down and all four of its team members, including co-founders, Randy Meech and Diana Shkolnikov, will be joining Snap, where they’ll be working on map and location-related products. Snap Map, which allows users to view public snaps from a given area and to share their location with friends, will be an important part of this work. Last year, Snapchat announced that the Snap Map was reaching 200 million users every month. StreetCred has previously raised $1 million in seed funding from Bowery Capital and Notation Capital. Financial terms of the acquisition were not disclosed.

Restore Technology, ITAD wing of tech provider, Restore plc, Acquires CDL
Runcorn, Cheshire – 7th January 2021 - IT asset and disposition (ITAD) firm, Restore Technology, seeks to grow its channel footprint with the acquisition of Computer Disposals Ltd (CDL). Following the acquisition, Restore Technology, the ITAD wing of AIM-listed tech provider, Restore plc, now claims that it is the largest and fastest-growing IT recycling and ITAD business in the UK. According to Restore, CDL has one of the most advanced processing centres in Europe, handling hundreds of thousands of items a year. Services offered by the combined businesses will include: secure data destruction, IT recycling, on-site IT destruction, server and datacentre relocation and IT asset management. In a statement announcing the acquisition, Restore Technology CEO, Charles Bligh, said: "CDL is one of the most respected operators in the market and after several years of discussions we are delighted that they have decided to become part of our fast-growing company. Restore Technology is now comfortably the UK market leader in the recycling of IT assets and with the addition of a major new site in the North West, we have increased our scale and created greater opportunity to grow, both organically and with additional acquisitions in the future."

F5 to Acquire Volterra to Create the First Edge 2.0 Platform for Enterprises and Service Providers
Seattle & Santa Clara, California - 7th January 2021 - F5 Networks an application security and company, and Volterra, the first universal edge-as-a-service platform, have announced a definitive agreement under which F5 will acquire all issued and outstanding shares of privately held Volterra for approximately $440 million in cash and approximately $60 million in deferred consideration and assumed unvested incentive compensation to founders and employees. With the addition of Volterra’s technology platform, F5 is creating an edge platform built for enterprises and service providers that will be security-first and app-driven with unlimited scale. “Current edge solutions are simply inadequate for today’s enterprise customers. It’s time to break out of closed edge systems that only perpetuate the pain of building, running, and securing apps,” said François Locoh-Donou, President and CEO, F5. “With Volterra, we advance our Adaptive Applications vision with an Edge 2.0 platform that solves the complex multi-cloud reality enterprise customers confront. Our platform will create a SaaS solution that solves our customers’ biggest pain points. The success of F5’s software transformation has put us in a position to deliver on the potential of Edge 2.0 and redefine our competitive position.”

Relativity Acquires Data Management Software Company, VerQu
Chicago and Raritan, NJ – 6th January 2021 - Relativity, a global legal and compliance technology company, has announced that it has acquired VerQu, a data management software company that helps organizations migrate and capture communication data for record retention and compliance purposes. The integration of VerQu into Relativity's SaaS products will transform how organizations handle collaboration and chat data, and massively accelerate the ability to collect, analyze, monitor and review all types of unstructured data seamlessly and securely. CEO at Relativity, Mike Gamson, commented: "It's imperative that the legal and compliance industries stay ahead of and evolve with the changing nature of work in organizations globally. Enterprise communications will continue to shift rapidly and scale from traditional channels like email toward chat and collaboration platforms. That's why Relativity is committed to investing in technology that connects directly to native cloud data sources for surveillance and e-discovery workflows, evolving the data paradigm from documents to include conversations."

Investcorp Portfolio Company Impero Acquires Netop
6th January 2021 - Investcorp has announced that its portfolio company, Impero, a provider of online student safety and classroom and network management software, has acquired Netop, an international software solutions provider to the education sector and corporates, from Consolidated Holdings A/S. The addition of Netop will significantly increase Impero’s scale and presence in the United States and has the potential to meaningfully increase Impero’s total and recurring revenue base. The transaction further expands Impero’s addressable market while diversifying its customer base and providing an entry into the corporate sector, primarily in financial services and retail. Terms of the transaction were not disclosed.

TIBCO Completes Acquisition of Information Builders
Palo Alto, CA – 5th January 2021 - TIBCO Software Inc has announced it has successfully closed the acquisition of Information Builders, Inc (ibi), following its announcement in October to acquire the business. For TIBCO, an enterprise data company, empowering its customers to connect, unify and confidently predict business outcomes, solving the world's most complex data-driven challenges, the acquisition marks the addition of ibi's data management and analytics capabilities to the advanced TIBCO Connected Intelligence platform. The formal integration of ibi into TIBCO began in early January, following the end of ibi's financial year end on December 31, 2020. "We're excited to recognize the exceptional technology and great reputation built by ibi, and we look forward to providing our existing and future customers with an even broader range of innovative, data-driven solutions to support faster, smarter digital transformations," said Dan Streetman, Chief Executive Officer, TIBCO.

VGM Group Acquires Enterprise Content Management Company, Redstone
Waterloo, IA - 5th January 2021 - VGM Group, an employee-owned professional services company, announced its acquisition of Redstone Content Solutions LLC. This move further expands its market position as a top national professional service company and leader in providing vital Enterprise Content Management (ECM) solutions to small and medium-sized business (SMB), mid-market and enterprise companies. The acquisition comes at a time when VGM Group is seeing increasing demand for improved customer experience solutions. Leading industry analyst firms predict that the ECM market will grow from $40.1 billion in 2020 to $66.9 billion by 2025. “We are thrilled to be adding Redstone to the VGM family,” said VGM Group Chief Financial Officer, Jim Nygren. “We are looking forward to continuing the spectacular service Redstone is known for and help provide the team resources to do even more. A common cultural thread between VGM and Redstone is our commitment to our customers, this is and will continue to be our highest priority. Today’s strategic acquisition further equips VGM Group with expanded solution capabilities, partnerships, and scale to serve the needs of a larger portion of the industry landscape."

15 January 2021
Title position: