Future more certain for Toshiba

Toshiba's board has accepted a $15.2 billion buyout offer from a group led by Japan Industrial Partners.
Paul Booth
By Paul Booth
Johannesburg, 03 Apr 2023
Paul Booth
Paul Booth

The death of Intel’s co-founder Gordon Moore and the long-awaited solution regarding Toshiba’s future dominated the technology market last month. 

Key local news

  • Reunert acquired a 74.2% stake in local technology consultancy firm IQbusiness.
  • Acceleration, a global data and technology consultancy, has opened its Sub-Saharan Africa headquarters in Johannesburg.
  • Alviva Holdings has been delisted from the JSE.
  • Atlas, a US-based HR technology company, has launched in SA, establishing its regional headquarters in the country.
  • Coaxle, the integrated data and insights company of which Lightstone is a member, has acquired a 50% interest in iX, a provider of digital solutions primarily to the retail automotive industry.
  • The Huge Group has unveiled a new brand – Huge TNS – after combining its subsidiaries Huge Networks and Huge Telecom into one business.
  • Interconnect Systems’ executive team has bought out the share of the company held by its remaining co-founder, Tai van Aswegen.
  • Lescault and Walderman, a firm that provides technology-driven accounting and finance services to small to medium businesses in the US, has acquired a majority stake in AWCape, a South African Sage platinum business partner.
  • Multichoice has entered into an agreement with Comcast’s NBCUniversal and Sky to create the leading streaming service in Africa.
  • Moshe Capital has acquired a 20% stake in Pragma, an engineering services business that specialises in delivering enterprise asset management services and solutions.
  • PayShap, the rapid payments platform endorsed by the South African Reserve Bank, has been launched.
  • Hong Kong-based Qnet, a global e-commerce-based direct selling company, has launched in SA.
  • RadixTrie has acquired The CNC Institute, which specialises in Oracle’s JD Edwards CNC.
  • Santam is acquiring MTN SA’s mobile device insurance book, which has about 400 000 policies and a gross written premium value of nearly R400 million.
  • The Knowledge Integration Dynamics Group, through its subsidiary ITBusiness, has acquired a majority share in SaltTech, a Microsoft Gold Certified Partner for data platform, data analytics and application integration and a Silver Partner for cloud platform and data centre competence.
  • The appointments of new CEOs/MDs at Cell C, LightWare LiDAR, MultiChoice SA, the Ministry of Communications and SANSA.

Key African news

  • Dell Technologies has formed a new Central & Eastern Europe, Middle East, Turkey & Africa region led by Mohammed Amin, who has led Dell’s operations across the META region for the past two decades.
  • Liquid Intelligent Technologies has acquired Egypto-based Cysiv MEA, formerly SecureMisr, which specialises in providing enterprise cloud and cyber security services.
  • The appointments of a new head for Fiserv’s EMEA region and a CEO at Seacom.

Key international news

  • The ALTEN Group acquired QA Consultants, a leading independent software quality engineering services company serving North America.
  • Chartbeat bought Lineup Systems, a SaaS revenue management specialist, as well as Tubular Labs, a social video analytics platform.
  • The ETC Group purchased Amadys, a leading provider of end-to-end connectivity solutions in the Benelux, UK and DACH regions.
  • Fulcrum IT Partners acquired Advizex, an MSP.
  • GoodSuite, an MSP, bought Amerimac, a managed print services provider.

PayShap, the rapid payments platform endorsed by the South African Reserve Bank, has been launched.

  • HPE purchased Israeli-based Axis Security, a cloud security software maker ($500 million); and entered into a definitive agreement to acquire OpsRamp, an IT operations management company that monitors, observes, automates and manages IT infrastructure, cloud resources, workloads and applications for hybrid and multicloud environments, including the leading hyperscalers.
  • LoanTap acquired Unofin, a healthcare-focused fintech start-up.
  • MACOM Technology Solutions bought Linearizer Communications Group, a developer of industry-leading products.
  • NV5 Global purchased Gaudet Associates, a provider of owner representation services.
  • Optiv, a major player in the federal government space, acquired ClearShark, which focuses on segments including data centre and cloud infrastructure, big data and enterprise storage.
  • Pavion, formerly known as Corbett Technology Solutions, a communications solutions provider, bought Netronix, an acquired enterprise security company.
  • Rapid7 purchased Minerva Labs, a leading provider of anti-evasion and ransomware prevention technology.
  • The NFT Gaming Company acquired the artificial intelligence assets of Voxpow to integrate into its proprietary game portfolio.
  • Tracer, the leader in brand protection and brand success, bought Portugal-based Mad Power Technologies, a firm that provides AI and machine learning services with expertise in data capture and modelling, data engineering and advanced analytics, and cloud-based application delivery.
  • Upstack purchased The Monaco Group, a technology advisory firm, and LinkSource Technologies’ network and cloud sourcing business.
  • Velocity Technology Group acquired Stellarise, a UK-based managed services provider.
  • Accenture has agreed to acquire India-based Flutra, an industrial artificial intelligence company.
  • Akamai Technologies has entered into a definitive agreement to buy Ondat, a cloud-based storage technology provider with a Kubernetes-native platform for running stateful applications anywhere at scale.
  • Apple has won an appeal regarding a $502 million verdict for patent licensing company VirnetX, in a long-running fight over internet privacy technology.
  • Alibaba plans to split its business into six independently run entities, cloud, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics, and media and entertainment. The Alibaba Group will become a holding company overseen by current chairman and chief executive Daniel Zhang.
  • Blackstone has agreed to buy Cvent, an event software company ($4 billion).
  • Cisco Systems plans to acquire Lightspin, a cloud security software company.
  • CNH Industrial has agreed to buy Hemisphere GNSS, a high-performance satellite positioning technology company ($175 million).
  • Constellation Software’s Perseus operating group has entered into a binding commitment to acquire a US-based provider of vertical market software.
  • Digital Wave Technology, a leader in AI-powered omnichannel experiences for retail and brands, is acquiring Finland-based GoalProfit, an AI and optimisation start-up.
  • The EQT Growth fund has entered into an agreement to acquire a majority stake of GotPhoto Company.
  • GIC (Singapore) will acquire Works Human Intelligence, an HR software provider in Japan ($2.6 billion).
  • Gilat Satellite Networks has signed a definitive agreement to acquire DataPath, a market leader in trusted communications for the US DOD Military and Government sectors.
  • Germany-based Infineon Technologies plans to acquire Canada-based GaN Systems, a global technology leader in the development of GaN-based solutions for power conversion ($830 million).
  • Inflexion has sold UK-based software development company Mobica to Cognizant (£250 million).
  • has proposed spinning off its subsidiaries JD Property and JD Industrials and separately list them on the Hong Kong stock exchange.
  • Kaspersky has acquired 49% of Ximi Pro, a subsidiary of Ximi Lab that develops Tron, a comprehensive solution for the protection of software container infrastructures.
  • The KORE Group Holdings, a global leader in IOT solutions and worldwide IOT connectivity as a service, has signed a definitive agreement to acquire Twilio's IOT business unit.
  • Lenovo Group must pay InterDigital $138.7 million for a licence for its portfolio of telecommunications patents, London's High Court ruled in the latest round of a long-running dispute.
  • Luminate Capital Partners, an enterprise software-focused firm, will take a majority stake in Ease, which makes auditing software for manufacturing plants.
  • Jio Platforms, owned by Indian conglomerate Reliance Industries, will buy communications equipment maker Mimosa Networks.
  • Qutoutiao, China’s mobile content aggregator, is to delist from Nasdaq.
  • Renesas Electronics has announced plans to acquire Panthronics, a fabless semiconductor company specialising in high-performance wireless products.
  • SAIC has signed a definitive agreement to sell its logistics and supply chain management business to ASRC Federal Holding Company ($350 million).
  • Samsung Electronics expects to invest $230 billion over the next 20 years to develop what the country's government called the world's largest chip-making base.
  • SAP is selling its majority stake in data analytics company Qualtrics International to a consortium of investment firms led by Silver Lake and the Canada Pension Plan Investment Board ($12.5 billion).
  • SDC Capital Partners has acquired a majority stake in Cityside Networks, a fibre-optic internet provider.
  • SoftBank has agreed to acquire and take private Berkshire Grey, an AI and robotics company. SoftBank, already a shareholder in the company, will pay $375 million for the remainder.
  • Sonata Software North America, a wholly-owned subsidiary of Sonata Software, has signed a definitive agreement to purchase Quant Systems, an IT services corporation.
  • T-Mobile US plans to acquire prepaid brands, including Mint Mobile owned by US actor Ryan Reynolds, in a deal valued at up to $1.35 billion.
  • Toshiba's board has accepted a $15.2 billion buyout offer from a group led by private equity firm Japan Industrial Partners.
  • Weibo Corporation is raising its stake in Shanghai-listed media marketing firm Inmyshow Digital Technology Group through the acquisition of ShowWorld Hong Kong ($314.7 million).
  • Wipro has overhauled its two global business lines into a new model, with four global business lines organised around cloud, enterprise technology and business transformation, engineering and consulting.
  • Accel-KKR, a tech-focused private equity firm, has made a significant equity investment in Loftware, a cloud-based enterprise labelling and artwork management services company.
  • The investment by Summa Equity in Danish cyber security company Logpoint.
  • The investment by Thoma Bravo in Amsterdam-based Logex, a healthcare analytics company that serves European providers in 10 countries.
  • The $200 million investment by Walmart in PhonePe, an Indian fintech platform.
  • The $350 million investment co-led by Spark Capital and General Catalyst in generative AI specialist Adept.
  • The $150 million investment led by Andreessen Horowitz in, a generative AI chatbot.
  • The $116 million investment led by QED Investors and Invus Opportunities in Rain, an HR tech start-up.
  • The $300 million investment led by Lightspeed Venture Partners, Greenoaks Capital Partners and Index Ventures in Wiz, a cloud security start-up.
  • The $100 million investment led by Kindred Ventures in Humane, an AI start-up.
  • The $120 million investment led by JMI Equity in SOCi, a marketing software specialist.
  • The $300 million investment led by Spark Capital in Anthropic, a generative AI start-up.
  • The $72.8 million investment led by Yuexiu Industrial Investment Fund in Cardinal Operations, a Chinese developer of AI-based decision-making technologies used by companies such as Huawei and Xiaomi.
  • The appointments of new CEOs at Axcelis Technologies, Casa Systems (interim), Domo, Groupon, Kimball Electronics, Leidos, Luno, Lyft, Meadowgate Technologies, Medallia, OneNeck IT Solutions, Redstor, Sabre, TCS, Tech Mahindra and Twitch.
  • The deaths of Intel’s co-founder Gordon Moore, a pioneer in the semiconductor industry whose "Moore's Law" predicted a steady rise in computing power for decades; and Rajalaxmi Ram Krishnan, CEO of Altruist Technology.
  • IPO filings from Global Mofy Metaverse (Nasdaq) and Tata Technologies (India).
  • IPOs/listings from ARB IOT Group, Beamr Imaging (Nasdaq), Intchains Group (Nasdaq) and Xiao-I (Nasdaq).

Research results and predictions

  • According to Gartner, end-user spending on security and risk management in the MENA region is forecast to total $2.8 billion in 2023, an increase of 10.4% from 2022.
  • According to IDC, the MEA personal computing devices market, which is made up of desktops, notebooks, workstations and tablets, suffered a sharp year-on-year decline in shipments during Q422, with shipments across the region totalling 5.2 million units, down 23.6% year-on-year.
  • According to IDC, shipments of smartphones will decline 1.1% in 2023 to 1.19 billion units, down from the 2.8% growth in the prior forecast as the market continues to suffer from weak demand and ongoing macro-economic challenges. Real market recovery is not expected to occur until 2024, when IDC expects 5.9% year-over-year growth followed by low single-digit growth leading to a five-year CAGR of 2.6%.
  • According to IDC, global spending on artificial intelligence, including software, hardware and services for AI-centric systems, will reach $154 billion in 2023, an increase of 26.9% over the amount spent in 2022. The ongoing incorporation of AI into a wide range of products will result in a CAGR of 27% over the 2022-2026 forecast, with spending on AI-centric systems expected to surpass $300 billion in 2026.
  • According to IDC, Africa's smartphone market declined for the sixth consecutive quarter in Q422, with shipments down 17.8% year-on-year to 17.6 million units. Africa's feature phone market also declined in Q422, with shipments down 16.2% to total 22.7 million units.
  • According to IDC, worldwide spending on security solutions and services is forecast to be $219 billion in 2023, an increase of 12.1% compared to 2022. Investments in hardware, software and services related to cyber security are expected to reach nearly $300 billion in 2026, driven by the ongoing threat of cyber attacks, the demands of providing a secure hybrid work environment and the need to meet data privacy and governance requirements.
  • According to IDC, the META region smart home devices market had a mixed performance in the last quarter of 2022 as end-users adjusted their spending. While shipments were up 15.9% year on year, the market was down 3.4% in Q3 2022, with 8.44 million smart home devices shipped.

Stock market changes

  • JSE All share index: Down 1.1%
  • FTSE100: Down 3.1%
  • DAX: Up 2.8%
  • NYSE (Dow): Up 1.4%
  • S&P 500: Up 3.5%
  • Nasdaq: Up 7.3%
  • Nikkei225: Up 2.1%
  • Hang Seng: Up 1.9%
  • Shanghai: Up 0.4%

Final word

Look out for several IPOs in Hong Kong following the restructuring announcements from Alibaba and