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Broadcom snaps up VMware in $61bn deal

The semiconductor manufacturer will pay $61 billion for VMware. Following the closing of the transaction, the Broadcom Software Group will rebrand as VMware.
Paul Booth
By Paul Booth
Johannesburg, 30 May 2022

The continued fall-out from the proposed take-over of Twitter, and Broadcom’s $61 billion deal to acquire VMware dominated the ICT industry last month.

Key local news

  • Bitventure, which supplies real-time automated verification and payment solutions, acquired EasyDebit, a smart payment provider.
  • Datatec’s Analysys Mason bought Northern Sky Research, a global provider of satellite and space market research and consulting services.
  • Dark Fibre Africa and Vumatel’s two fibre network assets will be managed under a new infrastructure company, with Dietlof Mare as CEO.
  • Holowits has appointed Pinnacle as its exclusive distribution partner for SA.
  • Inq, a Convergence Partners company, is set to acquire Syrex, a provider of hyperconverged cloud technology solutions in SA.
  • Net1 SA will acquire Ovobix and Luxanio, investment holding companies that provide services such as automated cash management, card payment solutions as well as prepaid and value-added services, and unsecured short-term business loans to the South African retail sector. It has changed its name to Lesaka Technologies.
  • Reunert Applied Electronics Holdings has agreed to buy Etion Create, a leading original design manufacturing company specialising in the design, manufacture, integration and support of advanced technology (R168 million).
  • The appointments of new CEOs/MDs at Gijima, MICT SETA, Mustek (interim), Telspace Africa and Vodacom SA.
  • The death of David Kan, CEO of Mustek.

Key African news

  • Airtel Uganda has applied to the Uganda Communications Commission for an extension of one year to the 15 December 2022 deadline to list on the Uganda Stock Exchange.
  • Bravado Gaming has entered the MEA gaming industry as part of its global expansion strategy aimed at consolidating its regional fan base and exposing local gamers to its revamped gaming experience. The expansion will include the setting up of bases in South Africa, Egypt, UAE and Saudi Arabia and will boast a variety of competitive gamers and divisions from across the region, while simultaneously working on the lifestyle ecosystems of the Bravado brand.
  • DVT has opened an office in Kenya.
  • Entravision, a leading global advertising, media and adtech solutions company, has expanded into Kenya via its Africa-based digital business unit, Entravision 365 Digital.
  • Liquid Intelligent Technologies has entered into a definitive agreement to acquire Telrad, an Israeli-based technology company.
  • The Paratus Group’s Angolan entity, Internet Technologies Angola, SA will be rebranded and renamed as Paratus Angola, with effect from July.
  • The appointments of new CEOs/MDs, etc, at Commvault, DVT, Entravision, Letshego Holdings, Orange and Splunk.

Key international news

  • Accenture acquired Germany-based akzente, a recognised sustainability consultancy.
  • Aurum Proptech, formerly known as Majesco, bought Careersocially, a data analytics player.
  • UK-based Babble purchased UK-based Acive, a unified comms provider.
  • The Codestone Group acquired Clarivos, another SAP partner.
  • UK-based Daisy Communications has bought Communicate Better, an MSP.
  • Digital Media Solutions purchased Traverse Data, which leverages the power of data and technology to generate new customers for advertisers and incremental revenue for publishers, via a commercialised audience activation, re-engagement and retargeting platform.
  • Fastly acquired Glitch, a developer platform where more than 1.8 million developers innovate, create and share full-stack web apps without having to run the infrastructure or manage tools themselves.
  • Google bought Raxium, an innovator in single panel MicroLED display technologies.
  • Intel purchased Siru Innovations, a Finland-based developer of graphics intellectual property and software services.
  • Kratos Defense & Security Solutions acquired Southern Research’s Engineering division.
  • LexisNexis Risk Solutions bought BehavioSec, an advanced behavioural biometrics technology provider.
  • Metanomic purchased Intoolab, a Bayesian Network AI company, to expand and improve data analysis and AI across video games and Web3.
  • Micross Components acquired the High-Reliability Discrete Diodes and Assemblies business of Semtech, a leading global supplier of high-performance analogue and mixed-signal semiconductors and advanced algorithms.
  • Motorola Solutions bought Italian-based Videotec, a global provider of ruggedised video security solutions.
  • Paddle purchased ProfitWell, which focuses on areas such as pricing, revenue recognition and metrics for software as a service companies.
  • Peak Rock Capital acquired Mojix, a provider of supply chain intelligence software used globally.

Apple has been hit with an EU antitrust charge over its payment technology.

  • SCC, a reseller giant, bought Visavvi, a specialist in audio-visual solutions.
  • Shutterstock purchased Pond5, the provider of an online marketplace for royalty-free and editorial videos ($210 million).
  • Similarweb acquired Rank Ranger, a market leader in SEO and rank tracking.
  • Sirius XM Holdings bought Conan O'Brien's digital media firm Team Coco and his podcast "Conan O'Brien Needs a Friend".
  • Sophos bought SOC.OS, a cloud-based security alert investigation and triage automation solution provider.
  • SoundCloud purchased Singapore-based Musiio, an AI music start-up.
  • SS&C Technologies acquired 5 M's Minerals Management, whose cloud-based asset management platform focuses on managing minerals, royalties and non-operated working interests.
  • Synoptek bought Macquarium, a customer experience agency specialist.
  • The Purple Guys purchased Accelerate, a fellow MSP.
  • ZoomInfo acquired Comparably, a recruitment marketing and employer branding platform, to enable companies to proactively attract and engage top talent.
  • Amdocs has entered into a definitive agreement to acquire MYCOM OSI, a UK-headquartered company providing SaaS-based cloud network and service assurance solutions to communications service providers globally.
  • Apple has been hit with an EU antitrust charge over its payment technology.
  • Apollo Global Management and Roku have filed a joint bid for a minority stake in television network Starz.
  • Avant and PlanetOne, two telecoms service brokers, have come together under the Avant brand.
  • Broadcom has agreed to acquire VMware ($69.1 billion, including debt).
  • Capgemini will buy Chappuis Halder & Cie, a global strategy and management consulting firm specialising in the financial services industry.
  • Concentrix has reached a definitive agreement to purchase ServiceSource International, a global market leader in B2B digital sales.
  • Converge Technology Solutions has signed definitive agreements to acquire PC specialist d/b/a Technology Integration Group, which specialises in optimised performance solutions and critical business support.
  • Datadog has entered into a definitive agreement to acquire Hdiv Security, a leading security-testing software provider.
  • DigitalBridge Group is taking data centre operator Switch private ($11 billion).
  • DZS has signed a definitive agreement to acquire specific core assets of Adaptive Spectrum and Signal Alignment, an industry pioneer of broadband access quality-of-experience solutions.
  • Eaton has signed an agreement to acquire a 50% stake in the circuit breaker business of Jiangsu Huineng Electric Co.
  • HCL Technologies UK has signed a definitive agreement for the acquisition of Confinale, a Switzerland-based digital banking and wealth management consulting specialist and an Avaloq Premium Implementation Partner.
  • New York Stock Exchange-parent Intercontinental Exchange will acquire Black Knight, the mortgage-lending software and data analytics firm ($16 billion).
  • MakerBot and Ultimaker, two leaders in desktop 3D printing, have come to a business combination agreement that will accelerate the adoption of additive manufacturing by providing a comprehensive desktop 3D printing ecosystem of hardware, software and materials, with Nadav Goshen, current MakerBot CEO, and Jürgen von Hollen, current Ultimaker CEO, acting as co-CEOs.
  • ManTech International, the provider of IT services for US defence and federal civilian agencies, will be acquired by the Carlyle Group ($4.2 billion).
  • MaxLinear will buy Taiwan-based Silicon Motion Technology ($3.8 billion).
  • NTT Group will merge its IT services companies outside Japan in its latest global reorganisation.
  • A Virginia jury has ordered Pegasystems to pay its software rival Appian $2.04 billion in damages for misappropriating trade secrets.
  • Rambus has signed an agreement to acquire Hardent, a leading electronic design company.
  • Sabre has entered an agreement to acquire Nuvola, a single destination cloud-based platform providing service optimisation software to the hospitality industry.
  • Salesforce plans to buy Troops.ai, a company that provides an integration tool for Salesforce subsidiary Slack and rival collaboration application Microsoft Teams.
  • Canada's Shopify will buy Deliverr, a logistics firm ($2.1 billion).
  • Square Enix, a Japanese gaming company, will reduce its developer presence in the West with the sale of the studios behind franchises "Tomb Raider", "Deux Ex" and "Thief" to Sweden's Embracer Group ($300 million).
  • Stratasys’ MakerBot has entered into an agreement with Netherlands-based Ultimaker to join their businesses and form a new entity headquartered in both the Netherlands and New York for the global advancement of additive manufacturing technology.
  • Synchronoss Technologies has sold its Digital Experience Platform and Activation Solutions to iQmetrix, a leading provider of telecom retail management software.
  • Telenor has partnered with Aker and Cognite to build a new software security company called Omny, which will guarantee better safety for companies handling large volumes of data and information.
  • TelevisaUnivision has reached an agreement with a subsidiary of Hemisphere Media Group to acquire Pantaya, a streaming platform in the US for Spanish language movies and series.
  • Thales has struck a deal with Sonae Investment Management to acquire two European cyber security companies, S21sec and Excellium ($125.32 million).
  • WhiteSource is changing its name to Mend.
  • Zoom Video Communications has entered into a definitive agreement to acquire Solvvy, which offers a conversational AI and automation platform for customer support.
  • The $100 million investment by Insight Partners, Bessemer Venture Partners, Verizon Ventures, Pitango First & Pitango Growth, Tencent, SOMV Momentum and others in the US-Israeli mobility technology company Optibus.
  • The investment by FluidOne in Microsoft Gold partner Marathon Information Technology Services.
  • The $4.4 billion (9.8%) investment by Etisalat (e&) in Vodacom Group.
  • The $132 million investment by Guangzhou Bay Area Semiconductor Group in Gowin Semiconductor, a Chinese semiconductor firm.
  • The investment (75%) by Infinity Learn, an edtech start-up, in WizKlub, a cognitive development edtech firm.
  • The investment by KKR in Alchemer, a provider of customer experience software.
  • The $100 million investment by Insight Partners in Unit, the leading banking as a service platform that empowers companies to embed financial services in their products
  • The investment (12.09%) by Maruti Suzuki India in Sociograph Solutions, an AI software company that specialises in a visual AI platform predominantly used to help enterprises improve sales experiences and efficiency in their business.
  • The investment by RunTide Capital in Ascent Solutions, a cyber security company offering tech implementations, incident response, managed security and other services.
  • The investment by TA Associates in iCIMS, a recruitment software company.
  • The investment co-led by CRV and Insight Partners in Canada-based Tailscale, the provider of a corporate virtual private network for banks and other organisations.
  • The $300 million investment co-led by Coatue and Insight Partners in Xendit, one of the fastest growing payments infrastructure platforms for Southeast Asia.
  • The $250 million investment led by Bedrock and Kleiner Perkins in HR software firm Rippling.
  • The $110 million investment led by Bessemer Venture Partners in Teleport, which offers an identity-based authentication platform that helps customers such as Snowflake and DoorDash manage digital infrastructure.
  • The $300 million investment led by Dragoneer in SpotOn, which offers payments and other software to restaurants as well as other SMEs.
  • The $100 million investment led by Founders Fund in Material Security, whose technology protects data in e-mail accounts.
  • The $120 million investment led by HIG Growth Partners in Pyramid Analytics, a decision intelligence software developer.
  • The investments led by Insight Partners in Mosyle, a mobile device management firm ($196 million) and Abnormal Security, the leading AI-based cloud-native e-mail security platform ($210 million).
  • The $135 million investment led by IVP in Monte Carlo, the creator of a data reliability platform that helps companies such as Affirm and Auth0 detect and manage data downtime.
  • The investments led by KKR in Paddle, which focuses on building tools for software companies to handle payments, including checkout and subscription management ($200 million), and Semperis, a cyber security software firm ($200 million).
  • The $100 million investment led by Lux Capital in Hugging Face, which operates a platform for open source machine learning models for developers.
  • The $100 million investment led by Thoma Bravo in Imply Data, a real-time data analytics start-up.
  • The $150 million investment led by Tiger Global Management in data observability pipeline software developer Cribl.
  • The investment led by TCV in Evisort, which provides a no-code contract intelligence platform for legal, IT, finance, sales and procurement teams.
  • The appointments of new CEOs at Allegro MicroSystems, Arrow Electronics, Daisy, G.Network (interim), Mainline Information Systems (interim), McAfee, NCC Group, Partner Communications, Red River, Shutterstock and TTEC Holdings.
  • An IPO filing from Upson International (Manila).
  • IPOs/listings from Actelis Networks (Nasdaq) and Visionary Education Technology Holdings (Nasdaq).

Research results and predictions

  • According to IDC, IT spending in 2022 in SA will grow at about 6.5%, to surpass $27.5 billion, with telecommunications spend set to grow at 4.9% to reach $11.3 billion.

Stock market changes

  • JSE All share index: Down 2.7%
  • FTSE100: Up 0.5%
  • DAX: Up 2.6%
  • NYSE (Dow): Up 0.7%
  • S&P 500: Up 0.6%
  • Nasdaq: Down 1.6%
  • Nikkei225: Down 0.2%
  • Hang Seng: Down 1.9%
  • Shanghai: Up 2.7%

Final word

Gartner has released the results from its annual Global Supply Chain Top 25, identifying leading supply chains and highlighting their best practices. Included in the list are:

  • 1: Cisco
  • 7: Intel
  • 9: Lenovo
  • 10: Microsoft
  • 15: HP
  • 17: Dell
  • 25: Alibaba

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