Boss Insights - Weekly Software Sector M&A Round Up - 16th November 2018

16 November 2018

BlackBerry to Acquire Cylance for $1.4 Billion
Waterloo, Ontario and Irvine, California – 16th November 2018 – BlackBerry Limited has announced it has entered into a definitive agreement to wholly acquire Cylance, an artificial intelligence and cybersecurity company, for US $1.4 billion in cash, plus the assumption of unvested employee incentive awards. Pending regulatory approvals and other customary closing conditions, the deal is expected to close prior to the end of BlackBerry’s current fiscal year (February 2019). “Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio, UEM and QNX in particular. We are very excited to onboard their team and leverage our newly combined expertise,” said John Chen, Executive Chairman and CEO of BlackBerry. “We believe adding Cylance’s capabilities to our trusted advantages in privacy, secure mobility, and embedded systems will make BlackBerry Spark indispensable to realizing the Enterprise of Things.”

ResMed Completes Acquisition of MatrixCare
San Diego – 14th November  2018 – ResMed, a company offering cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions, has announced it has completed its $750 million acquisition of Minnesota-based MatrixCare, a company offering software solutions for more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty. “We’re all excited to have quickly closed this important deal and can officially welcome MatrixCare to the ResMed family,” said ResMed CEO Mick Farrell. “ResMed is the world’s top tech-driven medical device company, and we are well on our way to being the top provider of out-of-hospital software. It all fits into our mission of changing millions of people’s lives, whether it’s by treating and preventing the advance of chronic disease or helping someone easily navigate out-of-hospital healthcare settings so they and their loved ones can live their best life.” MatrixCare will continue to operate as a standalone business within ResMed’s SaaS portfolio, with targeted commercial, technical and operating links to ResMed and Brightree.

Nuance to Sell Document Imaging Division to Kofax in $400 Million Cash Deal
Burlington, Massachusetts – 12th November 2018 - Nuance Communications, Inc. has announced the company has signed a definitive agreement to sell its Document Imaging division to Kofax, Inc. The sale enables Nuance to focus the business entirely on its conversational AI- and cloud- based solutions while simplifying the organization and improving its growth profile. For Kofax, the Document Imaging division bolsters the company’s leadership in Intelligent Automation technologies. Total consideration for the transaction is $400 million in cash. The deal, which is subject to customary closing conditions, is expected to close by the end of Nuance’s second fiscal quarter. Mark Benjamin, Chief Executive Officer of Nuance, said: “Selling the Imaging division enables us to sharpen focus on our conversational AI- and cloud-related portfolio and accelerate the transformation well underway at the Company.”

Apptio Enters into Definitive Agreement to be Acquired by Vista Equity Partners for $1.94 Billion
Bellevue, Washington – 11th November 2018 - Apptio, Inc, the business management system of record for hybrid IT, has announced that it has entered into a definitive agreement to be acquired by an affiliate of Vista Equity Partners, an investment firm focused on software, data and technology-enabled businesses. Under the terms of the agreement, Vista will acquire all outstanding shares of Apptio common stock for a total value of approximately $1.94 billion. Apptio shareholders will receive $38.00 in cash per share, representing a 53% premium to the unaffected closing price as of November 9, 2018. Sunny Gupta, Co-Founder and CEO of Apptio, said, " Vista's investment and deep expertise in growing world-class SaaS businesses and the flexibility we will have as a private company will help us accelerate our growth while helping us maintain our commitment to creating wildly successful customers."

Roivant Sciences Announces $200 Million Investment Round
Basel, Switzerland and London, UK - 3th November 2018 - Roivant Sciences has announced a $200 million equity financing. New investors include NovaQuest Capital Management, RTW Investments, and other large institutional asset managers. These new investors comprise a majority of the round. All existing institutional shareholders in Roivant are also participating. The financing values Roivant at approximately $7 billion. All investors will continue to hold common equity without liquidation preferences. The proceeds will be used primarily to launch additional Vants, developing innovative medicines and technologies. The round is expected to close by early December.

Edenred Acquires CSI for $600 Million
8th November 2018 - Edenred, an organisation offering transactional solutions for companies, employees and merchants, has signed an agreement to acquire Corporate Spending Innovations, one of the leading providers of automated corporate payment software in North America. The acquisition will enable Edenred to seize the multiple opportunities offered by the North American corporate payment market. The acquisition, for an amount of around USD 600 million, follows the partnership formed almost two years ago between the two companies. In line with the Fast Forward strategic plan, the transaction will enable Edenred to step up its development in the fast-growing corporate payment segment, enhance its digital payment technology platform and significantly increase its presence in North America. “With the acquisition of this North American partner, which we know well, we now have many assets to become a major player in the buoyant corporate payment industry. CSI is indeed a well-established and fast-growing fintech. We are thereby accelerating the development of this business line, which will contribute to generating ever more sustainable and profitable growth for the Group, particularly in the United States,” said Bertrand Dumazy, Chairman and CEO of Edenred.

II-VI Incorporated to Acquire Finisar
Pittsburgh & Sunnyvale, California – 9th November 2018 - II-VI Incorporated, an organisation which provides engineered materials and optoelectronic components, and Finisar Corporation, a global technology company specialising in optical communications, announced that they have entered into a definitive merger agreement under which II-VI will acquire Finisar in a cash and stock transaction with an equity value of approximately $3.2 billion. The transaction values Finisar at $26.00 per share, or approximately $3.2 billion in equity value and represents a premium of 37.7% to Finisar’s closing price on November 8, 2018. Finisar shareholders would own approximately 31% of the combined company.

Deltatre acquires Massive Interactive for up to US$127m
Torino & London - 8th November 2018 - Deltatre has announced that it has completed the acquisition of 100% of Massive Interactive, a multi award-winning OTT software company. Combined, these entities are the largest independent OTT solution provider in the world. The move builds on Deltatre’s record year, adding another best-in-class capability to its overall technology suite of services. It adds deeper operations in Asia and the South Pacific and expands the company into the entertainment industry. This will also result in new levels of innovation from the company. The deal is subject to customary approvals. Massive will operate as a division of Deltatre which will have 18 offices worldwide, and nearly 1000 full-time staff, at close.

Coder Announces $4.5 Million Series Seed
Austin, Texas - November 2018 - founders John A. Entwistle (age 20), Ammar Bandukwala  (age 19) and Kyle Carberry (age 21) raise $4.5 million for their service which "server-powers" development environments. The google docs-like service allows developers to use tools (like VS Code) through their web portal. Local integrations and enterprise are on the roadmap for the tech startup.

Mphasis Acquires DevOps Automation Services Specialist, Stelligent
Reston, VA – 8th November 2018 - Stelligent, a technology services company specializing in DevOps automation on Amazon Web Services (AWS), has announced that it has been acquired by Mphasis, a global information technology (IT) solutions provider specializing in cloud and cognitive services.  The new unit known as Mphasis Stelligent, will be part of the Mphasis’ Digital Business and jointly focus on enterprise customers. Mphasis Stelligent will boost Mphasis’ capabilities in DevOps and Containerization and enhance its existing managed services capabilities. “The advent of public cloud infrastructure and SaaS software has elevated the importance of rapid automation in product development and product engineering for enterprises moving to the cloud. Together with Stelligent and its community heroes in the AWS ecosystem, we believe we are uniquely positioned to take advantage of this market opportunity. This allows us to join forces with an equally technically-deep company, bringing innovative, in-depth cloud solutions to enterprises in all Mphasis client segments,” said Nitin Rakesh, CEO and Executive Director, Mphasis.