2022 was a big year for companies buying other companies in the tech world. Many businesses made billion-dollar deals, and even smaller ones were bought for strategic reasons. Experts believe this trend will continue, and 2023 might see even more activity.
According to reports, mergers and acquisitions increased by 19% in 2022 compared to the previous year. Companies are not only making more deals, but they are also willing to pay higher prices. A survey in late 2022 found that most investors and big businesses expect more tech deals in the next year. Artificial Intelligence (AI) is expected to be the most popular area for these deals, followed by cloud computing. There is also a growing demand for IT security companies.
Some of the biggest business purchases in 2022 included VMware, Citrix, Anaplan, and Zendesk. These deals can bring both challenges and opportunities. If your company depends on a software that was acquired, you might have to adjust your strategy. However, these mergers can also lead to better technology and new possibilities.
IBM made its eighth big purchase of 2022 by buying Octo Consulting Group, a company that helps modernize government IT. Meanwhile, Microsoft made a huge $68.7 billion bid to buy Activision Blizzard, but the U.S. government is questioning whether it is fair to the competition. While video games are not a big concern for most businesses, Microsoft believes this deal could help them create virtual workplaces in the future.
Another major deal facing issues is Intercontinental Exchange’s $13.1 billion bid for mortgage software company Black Knight. Some lawmakers are worried that this deal could give one company too much control in the mortgage industry. However, this deal will mostly affect the mortgage sector and not other industries.
Cognizant also expanded by buying AustinCSI and parts of OneSource Virtual, adding hundreds of experts in cloud and automation technology. Meanwhile, French company LumApps bought chatbot maker Vizir to improve workplace interactions. However, tools like ChatGPT could be a strong competitor in this space.Ricoh is growing its IT services in North America by acquiring Cenero, a company that specializes in audiovisual services. Ricoh already manages Microsoft Teams Rooms and now wants to offer more unified communication services. The company aims to generate over 60% of its revenue from digital services by 2025, but in mid-2022, printing still made up almost half of its earnings.
SandboxAQ, a company that spun off from Google, has acquired Cryptosense, a French software company. Both companies help businesses secure their cryptographic systems, especially as quantum computing becomes a bigger threat to traditional encryption.
Stratus Technologies, a company specializing in edge computing, is now part of Smart Global Holdings. The $225 million deal allows Smart Global to expand its enterprise IT services.
Zaloni has sold its Arena data governance platform to Truist, a US bank. Along with the platform, Zaloni’s chief product officer and chief technology officer are also joining the bank. Truist hopes this technology will help reduce its IT costs.
Sage, known for its accounting software, has purchased Lockstep, a Seattle-based company that automates accounting tasks. This will allow Sage users to share financial data with other businesses, even if they use different accounting platforms.
Signal AI, which helps businesses track trends in news coverage, has acquired Kelp, a reputation monitoring firm. Kelp already uses Signal AI’s platform to monitor corporate reputations and will now work more closely with it.
AirSlate, a company specializing in workflow automation, has acquired DocHub to improve its e-signature services for businesses.
MariaDB, a cloud database company, has purchased CubeWerx, which specializes in geospatial software. It plans to add these features to its cloud database service, MariaDB SkySQL.
Salesforce has completed its acquisition of Troops.ai, a company that delivers real-time revenue updates to sales teams. Troops.ai will be integrated into Slack, which Salesforce owns.
Infosys, a global consulting firm, has acquired Base Life Science, a Danish company. This acquisition will help Infosys expand its services in the European life sciences industry, particularly in clinical trials and drug development.
IBM has bought Databand.ai, an Israeli company that specializes in monitoring IT operations. This acquisition strengthens IBM’s ability to help businesses manage their IT performance.
Ensono, a managed solutions provider, has acquired AndPlus, a data engineering company. This continues Ensono’s trend of acquiring small cloud consulting firms. The company is owned by KKR, which also owns BMC Software.
IFS, a company that provides enterprise software, has acquired Ultimo, a Dutch company specializing in enterprise asset management. IFS will continue to offer Ultimo’s software as a standalone solution.
Thoma Bravo, an investment firm, has completed its purchase of Anaplan, a business planning company, for $10.7 billion. The firm quickly installed a new CEO, Charles Goodman, to lead the company.
ParkourSC, a supply chain software company backed by Intel Capital, has acquired Qopper, an IoT networking company. The two companies plan to integrate IoT technology into supply chain management.
Zendesk, a CRM company, is being acquired by investment firms Hellman & Friedman and Permira for about $10.2 billion. This is significantly less than the $17 billion offer Zendesk rejected earlier in 2022. The deal follows Zendesk’s decision to abandon its $4 billion plan to acquire Momentive Global, formerly SurveyMonkey.
IBM has acquired Randori, a cybersecurity company that specializes in attack surface management. This is IBM’s fourth acquisition of the year, following purchases of Neudesic, Sentaca, and Envizi.
ServiceNow has agreed to buy Hitch Works, a company that maps employee skills. ServiceNow plans to use this technology to help businesses train and develop their workforce.
ICF, a digital consulting company, has acquired SemanticBits, a health services software provider, to expand its work with US government health agencies.
Epicor, an enterprise software company, has acquired Data Interchange, a UK-based company specializing in electronic data interchange (EDI). This acquisition strengthens Epicor’s order processing and data mapping capabilities.
Unit4, an ERP software company, has acquired ScanMarket, a company that provides cloud-based source-to-contract software.
McKinsey & Company, a consulting firm, has acquired Caserta, a data architecture and engineering company. McKinsey expects this acquisition to enhance its data transformation services.
NetApps has acquired Instaclustr, a cloud service provider that supports open-source database and workflow applications. Instaclustr will now be part of NetApp’s cloud management portfolio.
Zoom, best known for its video conferencing software, has acquired Solvvy, an AI chatbot company. Zoom plans to use Solvvy’s technology to improve customer service automation.
Oracle has acquired Adi Insights, a company that provides workforce management tools like shift scheduling and demand forecasting. These tools will be added to NetSuite, Oracle’s cloud-based business management platform.
Panasonic, which acquired Blue Yonder, a supply chain software company, is now planning to list it on the stock market as part of its new business strategy.
Augury, a company specializing in machine health monitoring, has purchased Seebo, a process intelligence company. Augury plans to integrate Seebo’s AI technology to help manufacturers optimize quality and efficiency.
Codestone Group has acquired Clarivos, a consulting firm specializing in SAP’s ERP and analytics tools.
Perforce Software, which provides software development tools, has acquired Puppet, a company that specializes in infrastructure automation.
Infosys has acquired Oddity, a German digital marketing agency, to enhance its marketing services. Oddity will be integrated into Wongdoody, a US-based marketing agency that Infosys bought in 2018.
Microsoft has acquired Minit, a process mining software company. The acquisition will help Microsoft’s customers optimize business operations.
NTT Data, a global IT services provider, has acquired Vectorform, a small digital transformation consultancy based in Detroit. NTT Data aims to strengthen its product development and customer experience services.
Celonis, a company known for process mining, has acquired Process Analytics Factory, a company that specializes in Microsoft-based process optimization.
Equinix, a global data center operator, has acquired MainOne, a West African data center company, for $320 million. MainOne operates in Ghana, Nigeria, and Côte d’Ivoire.
Salesforce has acquired Phennecs, a company that develops privacy and compliance tools for its platform.
SS&C Technology Holdings has acquired Blue Prism, a robotic process automation vendor. SS&C plans to keep Blue Prism’s business operations largely unchanged.
SAP has acquired a majority stake in Taulia, a company specializing in working capital management. JP Morgan will retain a share in the company, which will continue to operate independently.
Nvidia, with excess cash after its failed bid to acquire chip designer Arm, has purchased Excelero, a company that develops high-performance storage solutions.
NetApp has acquired Fylamynt, a cloud automation company, to improve its cloud management tools.
Vendr, a SaaS vendor management platform, has acquired Blissfully, a company that helps businesses track their software subscriptions and costs.
Tricentis, a software testing company, has acquired Testim, an AI-based test automation company, to enhance its testing solutions.
Phenom, an HR technology company, has acquired Tandemploy, a German company that helps connect employees with mentors and project leaders.
Atlassian, known for its project management software, has acquired Percept.ai, a chatbot developer, to enhance its IT support tools.
Lansweeper, an IT asset management company, has acquired UMAknow, a cloud asset documentation company.
Precisely, a data integrity company, has acquired PlaceIQ, a provider of location-based consumer data.
Aptean, an ERP vendor, has acquired JET ERP, an Austrian software company.
Indian IT firms Tech Mahindra and HCL Technologies have expanded into Europe through acquisitions. Tech Mahindra bought Com Tec Co IT, while HCL acquired Starschema, a Hungarian software services company.
Sage has acquired Brightpearl, an e-commerce management software company, to integrate it into its financial applications.
Nvidia has acquired Bright Computing, a company specializing in high-performance computing software.
Oracle has acquired Verenia’s NetSuite-based configure-price-quote business to strengthen NetSuite’s capabilities.
Broadcom moved closer to buying VMware for $61 billion after VMware shareholders approved the deal. This could bring big changes in cloud and virtualization technology, especially in the growing 5G market. In cybersecurity, RegScale bought GovReady, a company that helps businesses with security and compliance regulations.
In the business software space, Codestone Group continued to grow by buying DSCallards, a company focused on data analytics. Similarly, Anonos bought Statice, a company that develops tools to protect personal data. Privacy regulations are becoming stricter, so companies that help with data protection are becoming more valuable.
Remote access software company RealVNC improved its services by buying RPort, which allows IT teams to update Windows desktops faster. Meanwhile, NTT Data expanded its analytics services by buying Aspirent, adding over 230 data experts.
In the field of quantum technology, Google-backed SandboxAQ invested in two startups working on secure quantum communication. ServiceNow also expanded by buying Era Software to improve cloud-based tools for businesses.
Citrix, a well-known software company, went private after being bought for $13 billion and merged with Tibco Software to form Cloud Software Group. For now, they are keeping their separate identities but may integrate more in the future.
NTT Data also bought Apisero, a company that helps businesses integrate their systems using MuleSoft. They also purchased Umvel, a digital engineering company based in Mexico. Meanwhile, IBM continued buying smaller firms by acquiring Dialexa, a Texas-based company that develops software for different industries.
All these deals show how quickly the tech industry is changing. Companies are merging, adapting, and investing in new technology to stay competitive. Understanding these changes can help businesses take advantage of new opportunities and avoid potential risks in this fast-moving industry.
The tech world is always evolving, and these mergers and acquisitions are just one part of it. Companies are looking for ways to improve their services, expand their reach, and stay ahead of the competition. Whether it’s AI, cloud computing, or cybersecurity, businesses are investing in the future. If you work in the tech industry or use these services, keeping up with these changes can help you make better decisions.
For smaller companies, these big deals might seem overwhelming. However, they also create opportunities. When big companies merge, they often need new partners, suppliers, or technologies to help them grow. Smaller businesses that offer unique products or services may find new chances to collaborate or sell their solutions to larger firms.
Another important aspect of these deals is their impact on employees. When companies merge, some jobs may be lost, but new roles can also be created. Employees who stay with the company may need to adapt to new systems, processes, or management styles. For those looking for jobs, mergers can create openings in certain areas while making other roles less available.
For customers, these deals can be a mixed experience. Sometimes, when two companies come together, they create better products and services. Other times, competition decreases, and prices go up. If you rely on a particular software or service, it’s important to keep an eye on how these changes affect what you use and how much you pay for it.
Investors also closely watch these mergers and acquisitions. Some deals can make a company much stronger and more valuable, while others might not work out as planned. If you invest in tech companies, keeping track of these deals can help you understand market trends and where the industry is heading.
In the coming years, we can expect even more mergers and acquisitions in the tech space. AI, cybersecurity, and cloud computing will continue to attract big investments. Government regulations may also play a bigger role in deciding which deals go through and which ones face challenges.
At the end of the day, the tech industry is always changing. Companies will continue to buy, merge, and innovate. Keeping up with these changes can help businesses, employees, and customers navigate the shifting landscape and make the most of new opportunities.
