The 10 Biggest Tech Mergers And Acquisitions Of 2017
Making Moves
M&A activity didn't disappoint in 2017. It seemed like every week saw a new mega merger or purchase from some of the largest IT vendors and service provider giants, but even solution providers and IT distributors got in on the action, too.
With some expected, and some not-so-expected deals being announced and closed this year, the industry should expect a slew of new products, services and capabilities coming to the market in 2018.
Here are 10 of the biggest technology acquisitions that happened in 2017.
Get more of CRN's 2017 tech year in review.
10. Mitel, ShoreTel Finally Come Together
Price: $530 million
In a highly-anticipated move between the two cloud-based unified communications providers, Mitel announced its plan to acquire ShoreTel in July for $530 million.
Via the terms of the deal, Mitel received 100 percent of the outstanding shares of ShoreTel common stock in an all-cash transaction at a price of $7.50 per share. The acquisition, which closed in September, catapulted Mitel to the second-largest UC as a Service provider in the world, according to the company.
9. Cisco Buys SD-WAN Startup Viptela
Price: $610 million
Cisco got serious about SD-WAN in May when it announced plans to acquire SD-WAN specialist Viptela for $610 million in cash and equity. The deal bolstered Cisco's existing portfolio of SD-WAN solutions, including its iWAN and Cisco Meraki offerings. Cisco closed its acquisition of Viptela on August 1.
In a similar deal, Vmware revealed its plans to acquire SD-WAN startup VeloCloud in November for an undisclosed amount.
8. HPE Sinks Money Into Storage With Nimble, Simplivity Deals
Price: $1 billion and $650 million
Hewlett Packard Enterprise (HPE) put up big money during 2017 for two hyper-converged players. First, HPE closed its acquisition of Westborough, Mass.-based hyper-converged infrastructure technology developer SimpliVity for $650 million in February.
HPE upped the ante two months later after acquiring hybrid-flash storage player Nimble Storage for an impressive $1 billion. HPE said the deal, which closed in April, allows it to offer a full range of flash storage systems for customers of all sizes.
7. Cisco Buys BroadSoft
Price: $1.9 billion
Cisco struck again with its seventh acquisition of 2017 when it announced plans to buy unified communications software provider BroadSoft for $1.9 billion, or about $55 per share in October.
The deal, which is expected to close during Q1 2018, will combine Cisco's own collaboration technology for enterprises with BroadSoft's portfolio of offerings geared to small and medium businesses, covering customers of all sizes, Cisco said.
6. Tech Data Closes Avnet Acquisition
Price: $2.6 billion
Distribution giant Tech Data closed its mega acquisition of fellow distributor Avnet's Technology Solutions business for $2.6 billion in February.
Tech Data said its Avnet purchase will help it move away from the eroding traditional storage business and into the stronger flash and solid-state storage market.
5. Solution Providers Unite As Sirius Buys Forsythe
Price: $3.26 billion
Sirius Computer Solutions, a top IBM partner, struck a definitive agreement to acquire Forsythe Technology in September. The tie-up, which was finalized in November, formed a $3.26 billion solution provider organization that today ranks as the 20th largest partner organization in North America.
According to the two companies, the deal expands Sirius' portfolio of services offerings in security, data center, and risk management.
4. Cisco Closes AppDynamics Acquisition
Price: $3.7 billion
In one of the biggest IT aquistions during the first half of the year, networking vendor Cisco Systems moved into cloud system monitoring when it announced plans to acquire cloud application management company AppDynamics for a cool $3.7 Billion in January.
The deal, which closed in March, helped Cisco in its ongoing effort to move from the hardware world and into the software space.
3. Verizon Closes Massive Yahoo Deal
Price: $4.48 billion
Verizon in June closed its highly-anticipated acquisition of Yahoo for $4.48 billion, but not without fanfare.
The telecom giant renegotiated the original price tag of $4.83 billion for Yahoo following revelations over the summer that Yahoo's network suffered two massive security breaches in 2013 and 2014, with the 2013 attack being called the "largest hack to date" by security analysts. Alongside the close of the deal, Yahoo's former CEO Marissa Mayer, along with Yahoo co-founder David Filo and four other members, resigned from the board of directors of the remaining part of the company not acquired by Verizon, which is being called Altaba.
2. Intel Scoops Up Mobileye
Price: $15.3 billion
In March, Intel announced its plan to buy automotive chip maker MobilEye for a whopping $15.3 billion. By purchasing the Israel-based company, Intel is combining its Automated Driving Group operations with Mobileye, and the combined organization will create and deliver cloud-to-car solutions for the automotive market segment, according to Intel.
Intel closed the monster Mobileye deal in August.
1. CenturyLink Combines With Level 3 Communications
Price: $34 billion
Telecom provider CenturyLink closed the deal to merge with fellow service provider Level 3 Communications for $34 billion following approval from the Federal Communications Commission on November 1. Combined, the new company forms the second largest domestic communications provider serving global enterprise customers.
Via the terms of the deal, CenturyLink shareholders own approximately 51 percent and former Level 3 stockholders own approximately 49 percent of the newly-combined company. The new CenturyLink has an estimated pro forma revenue of $24 billion, excluding revenue related to CenturyLink's co-location business sale and including estimated divestitures.