2020 is shaping up as a year of big moves when it comes to mergers and acquisitions across the telecommunications and technology sectors.
For the past five years, the total merger and acquisition value in the telecommunications industry has surpassed the $1 trillion mark, with 45% attributed to in-country scale deals, enabling geographical expansion, and 20% bolstering in-country scope deals, aimed at enlarging companies’ portfolios, says Consultancy.eu. Colocation, cloud, and connectivity providers are scaling to meet the demands of an ever-expanding digital economy.
Globally, the number of data-center oriented merger and acquisition deals that closed in 2019 came to over 100 and private equity deals increased by 50% from 2018, according to Synergy Research Group. Last year saw major colocation players merging including Digital Realty and Interxion and we’re already seeing similar high-value agreements within the first few months of 2020.
Although there has been a strong regulatory movement within the industry this year, Deloitte predicts that activity will persist, with just 4% of respondents forecasting a decline in the number of deals in the 12 months ahead in their M&A Trends Report. Here are some of the most prominent merger and acquisition activities that have happened in 2020 so far:
Vodafone and TPG merger is approved
Vodafone Hutchinson Australia (VHA) and TPG, two of Australia’s largest telecommunications providers, will move forward with their merger after being given the green light by the Australian Competition and Consumer Commission (ACCC). The merger is expected to be completed by mid-2020, subject to the remaining regulatory and shareholder approvals, and any appeal by the ACCC. The deal is set to increase Vodafone’s network capacity, enable the group’s ambitious 5G plans, and allow scope for further investment.
T-Mobile and Sprint merger goes ahead
T-Mobile and Sprint, two major US carriers, are taking steps to finalize their merger following a favorable ruling by the Federal District Court in New York. The group will become the new ‘T-Mobile’, focusing on innovation across 5G, mobile wireless, and in-home broadband. This long-awaited merger could close as early as April 1st.
Google completes its acquisition of Looker and AppSheet
Google Cloud has acquired Looker, a business intelligence software and big data analytics platform, in a $2.6 billion deal, to strengthen Google Cloud’s analytics and data warehouse capabilities, including BigQuery, and to further support multi-cloud strategies.
AppSheet, a US no-code mobile-application-building platform, has also been acquired by Google Cloud to extend its development philosophy by giving enterprises a way to easily build and distribute applications.
Equinix signs agreement to acquire Packet
Equinix will acquire bare metal server and on-premise cloud provider, Packet. The deal aims to accelerate Equinix’s strategy to help enterprises more seamlessly deploy hybrid multi-cloud architectures. The acquisition will close during the first quarter of fiscal year 2020.
Veeam and Armis will be acquired by Insight Partners
Veeam will be acquired by global private equity and venture capital firm, Insight Partners in a $5 billion deal. Under new ownership, Veeam will become a U.S. company, with a U.S.-based leadership team, while continuing its global expansion.
Insight Partners is also acquiring Armis, an enterprise IoT security company, at a $1.1 billion valuation. Armis will continue to operate independently as they accelerate their platform and growth.
Accenture agrees to acquire Mudano
Accenture has agreed to acquire Mudano to enhance analytics and data transformation services for UK financial services firms. In 2019, Accenture spent nearly $1.2 billion on 33 acquisitions with potential for more to come in 2020 as the company continues to bolster its scope of services.
ServiceNow acquires Loom Systems and Passage AI
Apple acquires Xnor.AI
Vantage Data Centers acquires Etix Everywhere
To support its $2 billion European expansion into five new markets, Vantage Data Centers has acquired Etix, a leading EMEA data center provider with more than 50MW of built data center capacity across its footprint.
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