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Hutchison Whampoa makes £10.3bn purchase

The acquisition of O2 will see it merge with Three, Hutchison Whampoa's existing British carrier.

Paul Booth
By Paul Booth
Johannesburg, 30 Mar 2015

Lexmark's acquisition of Kofax and the Hutchison Whampoa/O2 deal were the main stories of the international ICT market last week.

At home, the Open Text BEE deal and Red Hat's new sub-Saharan Africa appointment were the local ICT highlights.

Key local news

* Mixed interim numbers from Cognition Holdings (ex-FoneWorx), with revenue down 1.3% but profit up 18.1%.
* Cognition Holdings acquired (63%) BMi Sport Group, a company that provides research and media monitoring of South African sport and the sport sponsorship market.
* Open Text has completed a BEE investment deal with Kutana Investment Group.
* ConvergeNet Holdings will commence trading under its new name, Stellar Capital Partners, on 2 April.
* A renewed JSE cautionary by Telkom SA.
* The appointments of Mark Geschke as MD of Relevant IT; and Ruhan Neethling as MD of Space Age Technologies.
* The resignations of Mark Bannerman as MicroStrategy's country manager for SA; and Mark Geschke, MD of Space Age Technologies.

Key African news

* Global Distribution FZE has opened an East African subsidiary, based in Kampala, Uganda.
* The appointment of Mark Bannerman as Red Hat's manager for sub-Saharan Africa.

Key international news

Open Text has completed a BEE investment deal with Kutana Investment Group.

* Apple acquired FoundationDB, a specialist in NoSQL databases.
* Cellnex Telecom bought the majority of Wind's telecom towers business (Italy) for EUR693 million.
* Hutchison Whampoa purchased Telefonica's UK mobile operator, O2, for £10.3 billion, in a move that will see the latter merged with Three, the former's existing British carrier.
* J2 Global acquired the online file backup, synchronisation and sharing assets of SugarSync.
* Lexmark bought Kofax for $1 billion, in a move designed to bolster the former's software services.
* Microsoft purchased LiveLoop, a start-up that developed a service to let people collaborate on PowerPoint documents.
* NCC, a UK security firm, acquired rival Accumuli for £55 million, in a deal expected to boost the former's capabilities in round-the-clock operational support and incident management.
* Optimal Payments bought rival Skrill for EUR1.1 billion, in a move that will propel the combined online payments business into the FTSE250.
* Twitter Ventures, Twitter's venture capital arm, made its first investment in Cyanogen, a company looking to compete with Google's Android operating system.
* HP and Bank & Olufsen, the Danish audio technology company, formed a strategic partnership.
* Maxim Integrated Products has filed several lawsuits against several banks alleging their smartphone banking apps infringed the company's patents.
* A US jury said Motorola infringed one of Intellectual Ventures' patents on multimedia text messaging.
* Excellent quarterly results from Supercell.
* Very good quarterly figures from Inovalon Holdings.
* Very good year-end numbers from United Internet (Germany).
* Satisfactory quarterly results from Accenture, Asure Software (back in the black) and Red Hat.
* Satisfactory year-end numbers from ZTE (although profit up over 90%).
* Mediocre quarterly results from BlackBerry (but back in the black).
* Mediocre year-end numbers from GameStop.
* Mixed quarterly figures from Verint Systems, with revenue up but profit down.
* The appointments of Alek Krstajic as CEO of Wind Mobile; Rob MacLellan as chairman of Wind Mobile; and Kaan Terzioglu as CEO of Turkcell.
* The resignations of Erez Antebi, CEO of Gilat Satellite Networks; Peter Cordova, interim CEO of Wind Mobile; Anthony Lacavera, chairman of Wind Mobile; and Alastair Lukies, founder and co-CEO of Monitise, leaving Elizabeth Buse as the sole CEO of the company.
* A planned IPO on London's AIM market by Myanmar's social media platform, MySQUAR.
* A planned IPO in India by AGS Transact Technologies, a company partially backed by TPG Capital.

Research results and predictions

EMEA/Africa:
* The EMEA security appliance market reached $3.38 billion in 2014, a moderate 2.9% year-on-year growth, according to IDC. Shipments increased by 3.5% year-on-year to 732 324 units. During the next three years, the security appliance market is expected to accelerate by about 6% to 7% year-on-year and reach $4.07 billion (857 714 units) by the end of 2017.

Worldwide:
* Worldwide integrated infrastructure and platforms revenue increased 19.4% in Q4 2014, as demand outpaced traditional systems, according to IDC.
* The global thin and terminal client market declined 12.5% in Q4 2014, with Dell replacing HP in the number one slot, according to IDC.

Stock market changes

* JSE All share index: Down 1.7%
* Nasdaq: Down 2.7%
* NYSE (Dow): Down 2.3%
* S&P 500: Down 2.2%
* FTSE100: Down 2.4%
* Nikkei225: Down 1.4%
* Hang Seng: Up 0.4%
* Shanghai: Up 2% (highest weekend close for five years)
* Top SA share movements: Jasco (-8.6%), Labat Africa (+25%), MTN (-9.7%) and Poynting Holdings (-9.1%)

Look out for

International:
* The investment by Softbank in India's Micromax Infomatics, a provider of affordable smartphones.
* The purchase by Amazon of Net-a-porter, a luxury online retailer.
* The buyout by Intel of Altera, one of its chip partners.

South Africa:
* Further developments regarding the local telecommunications industry.

Final word

Fortune magazine has published its 2015 100 Best Companies to Work For listing. From a technology perspective, the following were included:
* 1: Google
* 4: SAS Institute
* 8: Salesforce.com
* 21: Ultimate Software
* 22: Workday (new entrant)
* 24: Twitter (new entrant)
* 31: Intuit
* 35: NetApp
* 52: Autodesk
* 65: VMware (new entrant)
* 70: Cisco
* 71: Cadence Design Systems (new entrant)
* 90: Adobe
* 98: Accenture

As next weekend is Easter, my next column will appear on Monday, 13 April, but will fully cover the intervening weeks.

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