Software Tech M&A and Other News Round Up - February 2018

28 February 2018

Boss Insights – News – February 2018

SAP buys lead-to-money leader CallidusCloud for $2.4 Billion
SAP paid $2.4 billion to acquire lead-to-money vendor CallidusCloud, and analysts agree that the significant price may be worth it in an effort to compete with Salesforce. "SAP is connecting the back office to the front office in this consumer-driven growth revolution," Bill McDermott, SAP CEO said in the press release. "Our customers are focused on reinventing sales, service, marketing and commerce. The addition of CallidusCloud aligns perfectly to SAP's innovation strategy to transform the front office. SAP gives CallidusCloud the global scale to accelerate its already impressive growth." The CallidusCloud board of directors has unanimously approved the transaction. The per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud’s 90-day volume weighted average price per share. SAP has elected to fund the transaction with existing cash balances and an acquisition term loan. The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.

GTT’s $2.3 Billion Interoute Buy to Boost SD-WAN, Channel Program
25th February 2018 - Virginia-based GTT has announced it will buy UK-based Interoute, known for its fiber network and cloud-networking solutions, for approximately $2.3 billion. With 400 points of presence and interconnection with 129 cities, GTT executives say the purchase will continue the company’s international expansion and add 1,000 mostly European enterprise and carrier customers. It’s the first acquisition outside of the US for GTT since it announced plans to buy Hibernia Networks in 2016. CEO, Rick Calder, says the agreement is a big step for his company as it attempts to spread across the world. “This combination creates a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients’ growing demand for distributed cloud networking in Europe, the U.S. and across the globe. Following our successful, proven acquisition model, we expect to complete this integration within three to four quarters post-close and achieve a post-synergy multiple of seven to eight times adjusted EBITDA or better on a pro-forma basis.”

Nokia to bolster home Wi-Fi portfolio with acquisition of Unium
25 February 2018 - Espoo, Finland - Nokia today announced plans to acquire Unium, a US-based software company that specializes in solving complex wireless networking problems for use in mission-critical and residential Wi-Fi applications. Joining Nokia, Unium is merging with an organisation specialising in the connected home space with decades of experience in home networking and home devices and more than 47 million home gateways installed worldwide. Federico Guillén, President of Nokia's Fixed Networks business group, said: "The home networking market is booming and whole-home Wi-Fi is a key enabler for this. Today's Wi-Fi solutions still have serious issues with sticky clients, interference, coverage gaps and capacity issues. With Unium inside, our Nokia Wi-Fi solution will deliver an unmatched user experience, going beyond what standard mesh Wi-Fi solutions deliver today."

Bosch acquires U.S. carpooling start-up SPLT
Berlin and Stuttgart, Germany – Bosch is entering the ridesharing business. The supplier of technology and services has acquired Splitting Fares Inc. (SPLT), a U.S. start-up based in Detroit. SPLT operates a platform that allows companies, universities, and municipal authorities to offer their workforces ridesharing services. The B2B approach is designed especially for commuters. SPLT uses an app to connect people who share the same route to their place of work or study. An algorithm finds the best composition for the ride-share, and computes the fastest route. The aim is to reduce congestion and make the daily commute more relaxed. SPLT was founded in 2015. Some 140,000 users in the United States, Mexico, and Germany currently take advantage of the service. It has been agreed that the purchase price will not be disclosed. “With SPLT, we are extending our portfolio in the growth area of mobility services,” said Dr. Markus Heyn, member of the Bosch board of management. With connected mobility services, Bosch aims for growth well into double digits.

NMI agrees to acquire Creditcall to Expand EMV and Omnichannel Capabilities
Roselle, Ill. and Bristol, England – 20th February 2018 - NMI, a provider of payments enablement technology for independent sales organizations (ISOs), independent software vendors (ISVs), value-added resellers (VARs) and payment facilitators, has announced it has signed a definitive agreement to acquire Creditcall, an omnichannel payment gateway and EMV solutions provider. With offices in Bristol, England, and New York, and customers throughout many regions of the world, Creditcall will give NMI a global presence and access to new markets. This acquisition will continue to differentiate NMI from traditional payment gateway providers by further expanding its omnichannel and EMV capabilities, creating a one-of-a-kind payment gateway platform supporting all channels of commerce including retail, e-commerce, mobile and unattended. “The payment technology requirements of today’s merchants are more complex than ever—they need to accept and process payments in all sales channels and environments,” said Roy Banks, Chief Executive Officer of NMI. “The need for a single vendor and platform that seamlessly integrates and simplifies the complexities of card-present and card-not-present payments has never been greater, and the combination of NMI and Creditcall will finally deliver a true omnichannel solution.”

Oracle Buys Zenedge
Redwood shores, California - 15th February 2018 - Oracle has announced that it signed an agreement to acquire Zenedge, adding cloud-based network and infrastructure security capabilities to protect enterprises from today's complex digital threats. The combination of Oracle and Zenedge equips Oracle's enterprise-grade Cloud Infrastructure as a Service (Oracle Cloud Infrastructure) with integrated, next-generation Web Application Firewall (WAF) and Distributed Denial of Service (DDoS) capabilities. Zenedge helps secure critical IT systems deployed via cloud, on-premise or hybrid hosting environments. Customers leverage Zenedge's WAF and DDoS mitigation products to secure their applications, networks, databases and APIs from malicious Internet traffic. Powered by artificial intelligence (AI), Zenedge's products and 24/7 virtual Security Operations Center (SOC) defend over 800,000 web properties and networks globally.

Google to acquire Xively to strengthen its IoT platform for $50 Million
20th February 2018 - Google will acquire IoT platform, Xively, from software company, LogMeIn, for $50 million. The search giant has been building on its efforts in the IoT management space to create new opportunities for its cloud-based services, and, with this latest acquisition, plans to expand its offerings in the fast-growing market segment. Google has been looking to expand its role as a cloud services provider in the IoT. In a significant move last year, it launched its Cloud IoT Core, fully managed IoT platform in direct competition with Amazon, Microsoft and others. The platform is geared toward deployments for smart cities, utilities, transportation etc. In line with this vision, Google, last week hired Samsung’s former CTO, Injong Rhee, to coordinate and lead its various IoT ventures. Google will still have to work hard to match the broad range of features offered by Amazon, but will be able to leverage their extensive AI and machine learning experience from other operating areas, which could allow it to build a competitive IoT platform offering.

Swiss pharma company Roche buying Alphabet-backed oncology data start-up for $1.9B
Roche and Flatiron Health, Inc. have announced that they have signed a definitive agreement under which Roche will acquire all shares of Flatiron Health, following on from an existing equity stake of 12.6%. The transaction is expected to close in the first half of 2018. Flatiron Health, a privately held healthcare technology and services company headquartered in New York City, US, is a market leader in oncology-specific electronic health record (EHR) software, as well as the curation and development of real-world evidence for cancer research. With its large network of community oncology practices and academic medical centers across the US, Flatiron Health has created a technology platform designed to learn from the experience of every patient. Daniel O’Day, CEO Roche Pharmaceuticals said, “This is an important step in our personalised healthcare strategy for Roche, as we believe that regulatory-grade real-world evidence is a key ingredient to accelerate the development of, and access to, new cancer treatments…”

OpenText Acquires Hightail
Waterloo, ON –14-02-18 – OpenText™ an Enterprise Information Management (EIM) company, has announced that it has acquired Hightail, Inc, formerly known as YouSendIt, a company which offers a cloud service for file sharing and creative collaboration with approximately 5.5 million customers globally, spanning enterprise accounts, paid subscribers and individual consumers. “The acquisition of Hightail underscores our commitment to delivering differentiated content solutions in the cloud that enable marketers and creative professionals to share, produce and securely collaborate on digital content,” said Mark J. Barrenechea, OpenText Vice Chairman, CEO and CTO. Barrenechea further added, “I am excited about expanding Hightail capabilities as well as integrating Hightail into OpenText Content Suite, Documentum, Core, and Media Management, allowing our customers to seamlessly and securely collaborate with external trading partners and vendors.” Hightail is not expected to contribute significant revenue to OpenText's results for the fiscal third quarter ending March 31, 2018.

Warren Buffett's Berkshire Hathaway acquires $378 Million stake in Teva Pharmaceutical
Nebraska - 14-02-18 – Since the announcement of Berkshire Hathaway’s $378 million stake in Teva Pharmaceutical, the pharmaceutical company’s share price has soared. Teva is one of the largest pharmaceutical companies in the world, specializing in generic alternatives to name-brand drugs, especially antibiotics. The stock has performed well in the last six months, gaining 45%, but is still trading at less than half its highs from a year ago. Shares lost more than half their value in August 2017 after the company slashed its dividend and guidance, citing intense competition for generic drugs. Warren Buffett is well known for the ‘buy-and-hold’ strategy he applies to stocks he buys, and Teva has plenty of room to grow back to its previous highs.

STRATACACHE Completes Acquisition of Scala
Dayton, OH- 12 February 2018- STRATACACHE has announced that it has completed the acquisition of all outstanding Scala shares and Scala divisions around the globe including Scala Inc., Scala BV, Scala KK and Scala Nordic AS. This strategic move will foster further growth for Scala globally, providing access to STRATACACHE resources and technology platforms as well as setting the stage for future acquisitions into the Scala brand. “Scala has created an excellent brand and execution footprint around the globe over the past thirty years, tailoring their digital signage offerings to the specific needs of each global region. Strategically expanding that growth with the full backing of STRATACACHE support, services and capital will help grow Scala to the next level,” said Chris Riegel, CEO of STRATACACHE. “After great growth of Scala in 2017, we are making it clear that the Scala brand is part of the STRATACACHE family of digital media and marketing technology companies, and with that comes the unique ability to leverage the greater platform — including software, hardware, services and support — to serve leading global brands.”

Thomas H. Lee Partners to Acquire Alfresco Software
San Mateo, CA, Maidenhead, UK & Boston, MA – 8th February 2018 – Thomas H. Lee Partners, L.P, a private equity firm, investing in middle market growth companies, has announced that it has signed a definitive agreement under which funds affiliated with THL will acquire Alfresco Software, inc, an enterprise open-source provider of process automation, content management and information governance software. Founded in 2005 and headquartered in San Mateo, California and Maidenhead, United Kingdom, Alfresco provides enterprise content management solutions that enable clients to retain, manage and share documents, files and processes across cloud, mobile, hybrid, and on-premise environments. “With THL’s deep industry experience, operational expertise, and strategic guidance, we will be well positioned to expand our platform, build on our space in the enterprise content management and business process automation markets, and continue providing customers with the best-in-class service they have come to know and expect.” said Doug Dennerline, Alfresco’s Chief Executive Officer.

Logmein Announces Deal to Acquire Jive Communications
8th February 2018 - LogMeIn has agreed to acquire Jive Communications, a rising star in cloud-based Unified Communications. The deal is a key milestone in realizing a vision shared by both companies, and Logmein believes it will prove to be a defining moment for the Unified Communications and Collaboration (“UCC”) space as a whole. The ways modern workers communicate and collaborate to advance ideas, close business and get work done are changing rapidly. Logmein are taking steps to not only serve these ever-changing needs, but also to offer their customers a trusted, full-service UCC partner with unparalleled experience and the insight required to help clients unlock the full potential of their business. LogMeIn currently supports over two million customers with an award-wining portfolio that includes such products as GoToMeeting, GoToWebinar, GoToTraining, OpenVoice and A team of more than 1000 customer-focused employees powers the high-scale service and innovation of our Communications & Collaboration business unit with over 25 million users, seven million meetings and over 900 million conferencing minutes each month.

dinCloud Acquired by Premier BPO
Clarksville, TN – 6th February 2018 – dinCloud, a cloud platform for hosted workspaces and cloud infrastructure, has announced its acquisition by Premier BPO, a business process outsourcing company, and the appointment of Mark Briggs as its new CEO. Agreement terms are undisclosed. The strategic business move will allow dinCloud and Premier BPO to share their expertise and capabilities of IT outsourcing (ITO) and business process outsourcing (BPO) for customers as a broader portfolio, driving toward the concept of “everything as a service”. Both brands will continue to go-to-market within their respective areas of specialization: dinCloud will provide IT outsourcing of desktop virtualization, application publishing, and managed IT services; Premier BPO will provide back office support for sales and lead generation, inbound customer service, and data entry work for industries like telecom, transportation and logistics, and healthcare and medical devices.

Online Tech announces acquisition by Schurz Communications Inc.
Ann Arbor, Michigan – February 5, 2018 – Online Tech, LLC has announced that it has been acquired by Schurz Communications Inc., a diversified media company. Online Tech plans to leverage the investment capabilities of Schurz to expand to new markets across the United States and expand their product offerings. In connection with the acquisition, Online Tech will add industry veterans, Brad Cheedle and Tom Wilten to its leadership team to serve as the company’s new CEO and CFO, respectively. Yan Ness, who will step down as CEO of Online Tech, said that the acquisition will benefit Online Tech customers. “This transaction is truly win-win-win. Online Tech gets the perfect capital partners to grow the business and reach more customers than ever before. The Schurz family gets an industry-leading platform to build on and to help diversify their family business. And our clients get a much more capable IT partner who will have a renewed focus on creating exceptional customer experiences.”