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Tech industry aflutter as Elon Musk bags Twitter

The SA-born Elon Musk, who is the richest man in the world and CEO of Tesla, struck a deal to buy Twitter for $44 billion.
Paul Booth
By Paul Booth
Johannesburg, 03 May 2022

The global technology industry was dominated last month by Elon Musk’s $44 billion deal to buy Twitter, and multiple deals by Accenture. 

Key local news

  • Seacom acquired EOH’s Network Solutions and Hymax businesses (R144.9 million).
  • ADP has bought Sage South Africa’s payroll outsourcing business.
  • DiDi Chuxing confirms it will close shop in SA.
  • iSON Xperiences has taken a majority control of CSS South Africa.
  • RCS, the consumer finance arm of French banking group BNP Paribas, has acquired South African online credit provider Mobicred.
  • The University of Johannesburg’s vice-chancellor and principal professor Tshilidzi Marwala is the winner of the ICT sector’s coveted IT Personality of the Year Award.
  • The appointments of new CEOs at Altron (acting) and MetroFibre Networkx.

Key African news

  • Alphabet's Google is investing in its first Africa product development centre in Nairobi.
  • The appointments of new CEOs/MDs at Paratus and Wipro.

Key international news

  • Accenture acquired AFD.TECH, an independent network services company specialising in network engineering, operations and services, and Ergo, a data-centred business located in Argentina that helps companies create a culture of data-driven decision-making using big data, analytics and artificial intelligence. The company also concluded agreements to buy Avieco, a leading UK sustainability consultancy, and Greenfish, an independent engineering and advisory company specialising in sustainability consultancy services. The company, through Accenture Ventures, invested in Good Chemistry Company, a company that uses quantum chemistry, machine learning and quantum computing to accelerate new materials design; Strivr, a leading provider of virtual reality-based immersive learning and training solutions for enterprises; and Titan Space Technologies, a provider of an orbital compute platform.
  • Amazon India bought Glowroad, a women-focused social commerce start-up.
  • Bentley Systems acquired ADINA R & D, a leading developer of finite element analysis software applications.

Worldwide IT spending is projected to total $4.4 trillion in 2022.

  • Content+Cloud bought Azzure IT, a Microsoft Dynamics partner.
  • CTI Technology purchased MacHero, an Apple-focused IT services provider.
  • Datapath acquired MobileTek Services, an MSP focused solely on the K-12 education market.
  • Gupshup bought Active.Ai, a conversational AI platform used by banks and fintech firms; and AskSid, a conversational AI provider to top e-commerce and retail companies around the world.
  • Help/Systems purchased Terranova Security, a leader in global phishing simulation and security awareness training.
  • Hesa, a city-based rural technology start-up, acquired GullyBuy, a market-tech platform.
  • Main Capital Partners bought Netherlands-based BCS, a human resource management and payroll software provider, and Pro4all, a construction software specialist.
  • Maranatha Technologies purchased the assets of Avatar Computer Solutions, an MSP pioneer.
  • Motorola Solutions acquired Calipsa, a London-based video-AI start-up.
  • Nexa Equity bought Choice, a provider of a global payments platform.
  • ON24 purchased VIBBIO, a cloud video software company that enables businesses to create and edit professional videos with no experience needed.
  • OpenWeb acquired Adyoulike, a digital advertising company ($100 million).
  • OVHcloud bought ForePaaS, a unified platform specialising in data analytics, machine learning and artificial intelligence projects for businesses.
  • Peak Technologies purchased Graphic Label, a provider of automatic identification and data capture consumables, hardware, software and related installation and on-site services.
  • Pearl Street Equity acquired Webonise, a tech product development and services specialist that offers digital tools related to cyber security, e-learning, gaming, etc.
  • India-based Pine Labs bought a majority stake in Mosambee, a payments solution provider.
  • UK-based Prime Networks purchased TNSC, a managed services peer.
  • Renovus Capital Partners acquired ProfitOptics, a technology services company.
  • Roblox bought Hamul, a start-up that adds social elements to games.
  • Sogelink, a French construction software provider, purchased Locatiqs, which provides software and services for the geographic information systems and field service management markets.
  • Sonos acquired Mayht Holding, a Netherlands-based company that has invented a revolutionary approach to audio transducers.
  • Sophos bought UK-based SOC.OS, a spinout of BAE Systems Digital Intelligence, which provides a cloud-based security alert investigation and triage solution.
  • SysGroup, a UK-based MSP, purchased UK-based Orchard Computers, a Silver-level Microsoft partner as well as an HP and Dell partner.
  • Twitter acquired OpenBack, an Ireland-based push notification company.
  • Uniphore, a conversational automation platform, bought Colabo, an AI-powered knowledge automation solution.
  • Versapay, creator of a collaborative accounts receivable network, purchased DadeSystems, a provider of accounts receivable automation solutions.
  • Wipro acquired Convergence Acceleration Solutions, a consulting and programme management company that specialises in driving large-scale business and technology transformation for Fortune 100 communications service providers; and concluded an agreement to acquire Rizing Intermediate Holdings, a global SAP consulting firm ($540 million).
  • Advanced Micro Devices will acquire Pensando, a cloud start-up ($1.9 billion).
  • Alphabet-owned robotics subsidiary Intrinsic is acquiring the business of Vicarious, a robotics company and a robots as a service leader.
  • ANSYS has inked an agreement to acquire OnScale, a cloud simulation software provider.
  • A consortium led by AustralianSuper and ATN have won an auction to purchase Macquarie’s Axicom, Australia’s largest independent mobile tower operator ($2.68 billion).
  • Aviat Networks has agreed to acquire Redline Communications Group, a leading provider in mission-critical data infrastructure.
  • Brookfield Business Partners is buying CDK Global, taking private the last major publicly traded provider of software to auto dealers and manufacturers ($8.3 billion).
  • CGI has entered into an agreement for the acquisition, through its subsidiary CGI France SAS, of all the shares of Harwell Management Holding and its subsidiaries. Harwell Management is a management consulting firm specialising in the financial services industry and operating mainly within the French market.
  • Checkr has agreed to buy Inflection, a provider of background checks ($400 million).
  • Clearlake Capital and TA Associates have agreed to acquire Kofax, a provider of intelligent automation software.
  • Cyient will buy Singapore-based Grit Consulting, which has consulting expertise in asset-intensive industries.
  • Datto, a software maker, will be taken private by Kaseya in a deal funded by a consortium led by Insight Partners ($6.2 billion).
  • Deutsche Telekom has bought additional shares in T-Mobile US from Softbank for $2.4 billion, bringing its stake to 48.4%.
  • Digicel plans to wind down operations in Panama following that government's approval of a merger between competitors Cable & Wireless Panama and Claro.
  • Entravision has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan.
  • Elon Musk has clinched a deal to acquire Twitter for $44 billion.
  • EY intends to buy Client Servers, a domestic enterprise technology firm.
  • Globant has entered into a definitive agreement to purchase GeneXus, a company that developed a low-code platform used in several industries.
  • International Game Technology has entered into a definitive agreement to acquire iSoftBet, a leading i-gaming content provider and third-party game aggregator.
  • KKR is buying Barracuda Networks, an e-mail security provider, from Thoma Bravo ($4 billion).
  • NetApp has signed a definitive agreement to purchase Instaclustr, a platform provider of fully managed open source database, pipeline and workflow applications delivered as a service.
  • The Partners Group will acquire Ireland-based Version 1, an IT services and solutions provider.
  • PLDT units Smart Communications and Digitel Mobile Philippines have sold 5 907 telecoms towers to Axiata Group’s edotco Group and EdgePoint, which is backed by the DigitalBridge Group.
  • Providence Equity Partners has agreed to buy Airties, a Turkish provider of cloud-based managed WiFi solutions.
  • PTC has signed a definitive agreement to purchase Intland Software, which develops and markets the Codebeamer Application Lifecycle Management family of software products ($280 million).
  • The Public Investment Fund, a Saudi sovereign fund, and Saudi Telecom Co have inked a joint venture deal to create an IOT focused company.
  • Puppet, a DevOps pioneer, is being acquired by Perforce Software, an infrastructure automation software company known for its popular developer tools such as Helix.
  • Sensata Technologies has agreed to acquire Dynapower Company, a provider of energy storage and power conversion systems.
  • Synopsys has signed a definitive agreement to acquire WhiteHat Security, a provider of application security software as a service ($330 million).
  • Tenable has signed an agreement to acquire Bit Discovery, a leader in external attack surface management.
  • The SysGroup has struck a deal to acquire Truststream Security Solutions, a provider of security transformation services.
  • Thoma Bravo will purchase SailPoint Technologies, a cyber security firm ($6.12 billion).
  • TIM and Ardian have reached an agreement for the acquisition by a consortium led by the latter of an additional 41% stake in the jointly owned holding company Daphne 3, which in turn holds a 30.2% stake in Infrastrutture Wireless Italiane. Once the transaction is completed, the Ardian consortium will hold a 90% stake in Daphne 3.
  • Tozny and OneIDLab, two cyber security firms, will merge to offer customers a wider variety of security products on one platform.
  • Software-focused investment firm Turn/River Capital has agreed to buy Tufin Software Technologies ($570 million).
  • Uniti Group, a telecoms firm, has agreed to be taken over by a unit of Canada's Brookfield Asset Management ($2.7 billion).
  • Vector Capital has agreed to acquire an ownership stake in WatchGuard Technologies, a provider of network security and intelligence, endpoint protection, multi-factor authentication and secure WiFi.
  • WISeKey is selling its 51% stake in arago back to a German consortium of investors led by arago’s founder through his investment company, OGARA.
  • Taiwan-based WT Microelectronics has announced plans to take over Singapore-based IC distributor Excelpoint Technology via its wholly-owned subsidiary WT Semiconductor ($172 million).
  • Abry Partners has invested in Inoapps, a UK-based cloud specialist.
  • AJP Holding Company has invested in Sonim Technologies, a US provider of ultra-rugged mobile devices, accessories and solutions designed specifically for task workers physically engaged in their work environments, thus upping its stake to 52%.
  • The £100 million investment by Aviva Investors in ITS Technology Group, a wholesale full fibre provider.
  • The $4.2 billion (11.4%) investment by Warren Buffett's Berkshire Hathaway in HP.
  • The $690 million investment by Insight Partners, Smash Capital and Singapore sovereign wealth fund GIC in Singapore-based Coda Payments.
  • The investment by Insight Partners and Partners Group in Precisely, a provider of data integration, location intelligence, data governance and other related services to over 12 000 enterprise customers in more than 100 countries.
  • NexPhase Capital has invested in Aztec Software, an educational software company focused on the adult education and workforce training and certification markets.
  • The $100 million investment by Novator Ventures, Burda Principal Investments and General Catalyst in Nord Security, the company behind NordVPN.
  • The $110 million investment by Accel, Bain Capital, Ballistic Ventures and others in Veza, the provider of a data security platform.
  • The investment by i-Sight in Resurgens Technology Partners, a provider of case management software for HR, compliance and corporate security teams.
  • The $2 billion investment by Sony Group and the family-owned holding company behind the Lego Group in Epic Games.
  • The $215 million investment by Vista Equity Partners in Critical Start, which helps organisations identify, assess and respond to cyber threats in real-time while analysing threat data to inform future responses.
  • The additional investment by Thoma Bravo in Imprivata, a digital identity company.
  • The $412 million investment led by Advent International and General Catalyst in SonarSource, a coding platform for developers.
  • The $384 million investment led by DigitalBridge Investment Management in Netomnia, a provider of full fibre broadband infrastructure.
  • The $100 million investment led by General Atlantic in ThreatLocker, a cyber security software superstar.
  • The $240 million investment led by GIC in Grafana Labs, the fast-growing developer of the open source Grafana data observability, visualisation and dashboard software.
  • The $90 million investment led by Menlo Ventures, Norwest Venture Partners and IVP in Obsidian Security, a developer of a cyber security platform for SaaS applications.
  • The $230 million investment led by Norwest Venture Partners in Harness, the creator of a software delivery platform that provides developers with operations automation, security scanning, etc.
  • The $125 million investment led by SoftBank's Vision Fund 2 in Observe.AI, the provider of an intelligent workforce platform for contact centres.
  • The $185 million investment led by Softbank in Pax8, whose marketplace is empowering SMEs with technology solutions they would otherwise not have access to while simultaneously granting software vendors capabilities to a hard-to-reach customer segment.
  • The appointments of new CEOs at Air IT, American Tower Europe, Cognite, Comau, CWT, JD.com, Litera, PeopleFun, Qumu, Sonata Software, UiPath and Yandex (acting).
  • IPO filings from Ampere Computing (USA), Deezer (Paris) and Kaynes Technology India (India).
  • IPOs/listings from Ostin Technology (Nasdaq), Warner Bros Discovery (Nasdaq) and Zhihu (Hong Kong).

Research results and predictions

  • According to BMIT, SA’s spending on hardware, software and IT services rebounded significantly in 2021 from the dismal spending in 2020, with overall IT revenue growth at 6.5%. Putting the IT and telecoms categories together, overall ICT revenue growth was 3.7%, below the global average.
  • According to Gartner, worldwide IT spending is projected to total $4.4 trillion in 2022, an increase of 4% from 2021.
  • According to Gartner, global semiconductor revenue is projected to total $676 billion in 2022, an increase of 13.6% from 2021.
  • According to IDC, global shipments of traditional PCs, including desktops, notebooks and workstations, declined 5.1% in 1Q22.

Stock market changes

  • JSE All share index: Down 4.6%
  • FTSE100: Up 0.1%
  • DAX: Down 2.4%
  • NYSE (Dow): Down 5.3%
  • S&P 500: Down 9.1%
  • Nasdaq: Down 13.5%
  • Nikkei225: Down 3%
  • Hang Seng: Down 4.3%
  • Shanghai: Down 7.2%

Final word

Fortune magazine has just published its 2022 list of ‘Best companies to work for’. Included in the top 10 are:

  • 1: Cisco
  • 4: Salesforce
  • 5: Nvidia

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