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Symantec bags LifeLock

The company spent $2.3 billion on the identity theft protection services provider.

Paul Booth
By Paul Booth
Johannesburg, 28 Nov 2016

Acquisitions by Oracle and Symantec were the main stories in a quiet international ICT market last week.

At home, the IITPSA's top 2016 personality and visionary CIO winners were revealed.

Key local news

* Mixed year-end figures from Reunert, with revenue up 2.5% but profit down 3.8%.
* Mediocre interim numbers from Naspers, with revenue down 0.8% and profit down 14.9%.
* UK-based Kerridge Commercial Systems acquired SA-based Integrity Software and its suite of products.
* French Tech Labs, an R11 million investment in the Western Cape, was unveiled in Cape Town. Its aim is to be a conduit between the French IT sector and local start-up companies, to tap into and promote skills.
* Sbu Shabalala, CEO of Adapt IT, has been named the IITPSA's IT Personality of the Year for 2016. Peter Alkema, CIO of Business at First National , was named the Visionary CIO for 2016.

Key African news

* The Carlyle Group acquired a majority share in CMC Networks, a pan-African provider of managed connectivity solutions for global telecoms providers.
* Dandemutande Investments, one of Zimbabwe's leading broadband Internet access providers, bought YoAfrica, a top Internet service provider in Zimbabwe.

Key international news

The market for used smartphones will grow from 81.3 million devices in 2015 to 222.6 million units in 2020.

* Ctrip, China's largest travel company, acquired Skyscanner, a UK-based travel start-up, for £1.4 billion.
* Daisy, a business telecoms and technology company, bought Alternative Networks, its arch rival, for £163 million.
* Delta Electronics purchased Unicom System Eng, a computer-integrated manufacturing solution provider.
* L-3 Communications acquired UK-based MacDonald Humfrey Automation in a move designed to strengthen the former's position in the aviation security market. The deal was worth £224 million.
* MACOM Technology Solutions bought Applied Micro Circuits, an analogue chipmaker, for $770 million.
* Mimecast acquired substantially all of the assets of iSheriff, a cloud-based security provider. This acquisition will provide Mimecast customers with additional real-time e-mail threat intelligence and detection expertise, and complements Mimecast's existing portfolio of e-mail security, continuity and archiving solutions.
* Oracle bought Dyn, an Internet infrastructure provider.
* Symantec purchased LifeLock, a seller of identity theft protection services, for $2.3 billion.
* Canada's Wind Mobile has rebranded itself as Freedom Mobile.
* Very good quarterly figures from Magic Technology, Veeva Systems, Weibo and YY.
* Good quarterly numbers from Mentor Graphics and Sina.
* Satisfactory quarterly results from Analog Devices and Daktronics.
* Mediocre quarterly results from HPE.
* Mixed quarterly figures from Brocade Communications, with revenue up but profit down; HP, with revenue up but profit down; Partner Communications, with revenue down but back in the black; QAD, with revenue up but profit down; and Tech Data, with revenue up but profit down.
* Very poor quarterly figures from Cheetah Mobile.
* Quarterly losses from Gridsum, International Game Technology, Nimble Storage and Palo Alto Networks.
* The appointments of Alfonso G'omez Palacio as president and CEO of Telef'onica Colombia; and John Reid as CEO of Cable & Wireless.
* The resignations of Thorsten Dirks, CEO of Telefonica Deutschland; and Ariel Pont'on, CEO of Telef'onica Colombia.
* The retirement of Daniel McCranie, chairman of ON Semiconductor (as from 2017 AGM).
* An IPO filing from Presidio, an IT services firm.
* A delayed IPO by AppDynamics, a software company; the IPO is now expected in 2017.

Research results and predictions

EMEA/Africa:
* ICT spending in the Middle East, Turkey and Africa is forecast to total $243 billion in 2017, according to IDC. It expects the region's ICT market to grow 3.6% year-on-year in 2017. While this is down on previous forecasts, it still represents a considerable improvement on the 1.6% year-on-year growth that is anticipated for the current year.

Worldwide:
* Worldwide notebook shipments are estimated to reach 41.65 million units in Q416, up 6.4% sequentially, according to Digitimes Research.
* The market for used smartphones will grow from 81.3 million devices in 2015 to 222.6 million units in 2020, representing a CAGR of 22.3%, according to IDC.
* The 4G mobile devices market will be worth $926 billion by 2024, almost trebling in value from 2015, according to Persistence Market Research. The market is currently worth $344.8 billion.
* Global smartphone shipments are expected to grow 4.5% year-on-year to reach 1.4 billion units in 2017, according to TrendForce.

Stock market changes

* JSE All share index: Up 0.1%
* FTSE100: Up 1%
* DAX: Up 0.3% (a 2016 high reached during the week)
* NYSE (Dow): Up 1.5% (an all-time high reached during the week and breaking through the 19 000 level for the first time)
* S&P 500: Up 1.4% (an all-time high reached during the week and breaking through the 2 200 level for the first time)
* Nasdaq: Up 1.5% (an all-time high reached during the week and almost breaking through the 5 400 level barrier)
* Nikkei225: Up 2.3%
* Hang Seng: Up 1.7%
* Shanghai: Up 2.2%

Look out for

International:
* GoDaddy buying Host Europe Group, a hosting peer.
* Avaya selling off its call centre software unit and possibly filing for chapter 11 protection.

Africa:
* A rush by telecoms operators in Tanzania to meet the listing requirements of 31 December that have been mandated by that government.

South Africa:
* MegaFon, the Russian wireless carrier, controlled by billionaire Alisher Usmanov, buying a stake in the Internet company, Mail.ru, which is 28% owned by Naspers and 7.4% by Tencent Holdings.
* Amazon buying Naspers' souq.com, an online retailer.

Final word

Fortune magazine has published its top 20 names for 'Businessperson of the Year'. The list includes:
* 1: Mark Zuckerberg, CEO of Facebook
* 2: Jeff Bezos, CEO of Amazon
* 4: Larry Page, CEO of Alphabet
* 5: Satya Nadella, CEO of Microsoft
* 6: Brad Smith, CEO of Intuit
* 10: Jack Ma, executive chairman of Alibaba
* 11: Tim Cook, CEO of Apple
* 13: Reed Hastings, CEO of Netflix
* 18: Pony Ma, CEO of Tencent Holdings

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