Two weeks of acquisitions, financial results

The international ICT world was dominated by several acquisitions during the last two weeks. Locally, the focus was on the results from several locally listed entities and the launch of several new telecommunications initiatives.

* Oracle acquired Siebel Systems for $5.85 billion. This deal makes Oracle the number one CRM applications company and brings it close to being the world`s largest application vendor. Oracle also acquired privately-held G-Log, a logistics and transportation management software company.

* eBay gobbled up Luxembourg-based Skype for $4.1 billion. This acquisition puzzled many pundits and the stock markets have not reacted positively to the news, with some institutions downgrading eBay.

* Oce NV`s $754 million acquisition of Imagistics International to create a powerhouse in the professional printing and document management services arena.

* LogicaCMG`s take-over of France`s Unilog for lb630.6 million to create one of the top 10 IT service providers in Europe.

* Very good full-year figures from EOH (with revenue up about 40% and profit up over 20%), Faritec (with revenue up over 30% and well back in the black), Interconnective Solutions (with revenue well up and back in the black) and Net 1 UEPS Technologies (with revenue and income both well up).

* Good year-end figures from ERP.com with revenue up nearly 30% and income up about 10%.

* Very good interim numbers from ISA with revenue up about 25% and earnings up over 75%.

* Year-end figures from SITA showing revenue up 14.5% but profit from operations up nearly 150%. I question whether this is a satisfactory situation!

* Positive trading updates from Altron, EOH and Paracon.

* Accenture SA sold 30% of its shares to a black-owned trust, Akha Trust, the majority of whose trustees are black directors of Accenture.

* Transnet reversed its deal with Umthunzi Telecoms Consortium re the former`s 5% stake in MTN.

* The launch of Itec Tiyende Telecoms, a joint venture between Itec and Tiyende Telecommunications.

* The launch of Opera Telecom South Africa, a subsidiary of its UK parent, a provider of mobile services and applications geared toward media organisations and broadcasters. The local operation is headed up by Tim Legg.

* The launch of talknetafrica, a VOIP solutions and services provider.

* The formation of Nyeleti Technologies, created by About IT Solutions, Xperience IT and PCS.

* Datatec`s UK-based subsidiary, Logicalis, acquired TBC, an equipment reseller.

* StorTech took over Orcom, a certified Sun Microsystems vendor.

* Cape Empowerment Trust`s proposed acquisition of Sancino.

* The resignation of Ben Zaaiman as CEO of The Softstart Incubator.

* Telkom SA suspended three of its top executives.

* Corex was appointed as the South African distributor for Bluetake, a Bluetooth wireless technology solution provider.

It seems the re-drafting of the Convergence Bill has been completed and has addressed most of the major criticisms that had been raised with the original draft.

Paul Booth, MD

* Africa Legend Indigo opened a Nigerian office.

* The death of Charles Joseph, CEO and founding president of Nigeria`s MobilTel.

* The news that Intel plans to open a Nigerian office this year and one in Kenya in 2006.

* HP acquired Peregrine Systems for $425 million and ApplQ, a provider of storage management software.

* SAP gobbled up Canadian POS provider Triversity.

* Microsoft has taken over Canada`s Alacris, a maker of software for managing employee access to corporate computer networks.

* Symantec acquired WholeSecurity.

* Microsoft consolidated into three business units: the Platform Products and Services division, the Entertainment and Devices division, and the Business division.

* Deutsche Telekom sold off its remaining 10.1% stake in Russia`s largest mobile phone operator, OJSC Mobile TelSystems, for EUR1.3 billion.

* Xten Networks changed its name to CounterPath Solutions.

* The appointments of Aron Ain as CEO of Kronos, Mark Ain as chairman of Kronos (was CEO and chairman), Adam Gutstein as CEO of DiamondCluster International, Larry Hagewood as CEO of SPL WorldGroup, Paul Lacy as president of Kronos, Frank Libutti as CEO of Digital Fusion, John Schwartz as CEO of Business Objects SA, and Steven Springsteel as president of Verity.

* The resignations of Mel Bergstein as CEO of DiamondCluster International (stays on as chairman), Bernard Liautaud as CEO of Business Objects SA (stays on as chairman and chief strategy officer), Duncan Middleton as president of FiberMark, and John Schwartz as president of Symantec.

* Analyst upgrades for Alltel, Altiris, Asyst Technologies, AT&T, Ceridian, Corning, Electronic Arts, EMC, Intel, JDS Uniphase, Nokia, Qualcomm, SanDisk, SBC Communications, SemTech, Telephone and Data Systems, Tellabs, Texas Instruments and Tier Technologies.

* Analyst downgrades for AMD, Altera, Au Optronics, Brooks Automation, CCC Information Services, Cisco, Cognos, Comtech Telecommunications, Diebold, Docucorp, eBay, Gtech, IAC Interactive, Infineon Technologies, Informatica, Juniper Networks, Manhattan Associates, McAfee, MSC Software, National Semiconductor, NTN Communications, OmniVision Technologies, Oracle, OSI Systems, Red Hat, RightNow Technologies, Tellabs, Time Warner Telecom, Verint Systems, VeriSign, Verizon Communications, WebMethods and Xilinx.

* Positive results announcements from Bouygues, Hologic, MicroStrategy, Nokia, Qualcomm, SDL, Texas Instruments and Zoran.

* Negative result warnings from Pixology, Printronix, Seiko Epson and Singapore Telecom.

* Stock repurchase announcements from Agilent Technologies, APL Electronics, Brady, Coherent, CSI, Linktone, Novell, Pitney Bowes and Stratos International.

* Job loss announcements from 3Com, Siemens, Sony and Versata.

* Private funding obtained for Aperto Networks, a WiMax systems provider; BladeLogic, a data centre management software vendor; Everdream, a hosted desktop management services operator; Freeborders, an offshore outsourcing provider; Impress Software, a SAP integration software provider; Mirapoint, a vendor of messaging and security appliances; Nemerix, a Swiss start-up for GPS chipsets; Ruckus Wireless, a provider of wireless hardware; SunRocket, a VOIP provider; United Devices, a provider of grid computing hardware and software; Versatel Networks, a VOIP services provider; Volantis Systems, a content delivery specialist; and XConnect Global Networks, a provider of VOIP services.

* A rights issue by LogicaCMG to help fund the purchase of Unilog SA.

* A stock offering announcement by Endwave.

* Share split announcements from Enterasys Networks (reverse 8:1), Hologic (2:1) and Intraware (reverse 10:1).

* A good IPO from Ikanos Communications, a maker of chips for Internet TV, etc.

* A satisfactory IPO by TurboLinux on the Osaka Stock Exchange.

* Planned IPOs later this year by Investcom, a Lebanese telecoms group; Hutchison Whampoa`s Italian 3G unit, 3 Italia; and Telenet, the Belgian cable operator.

* A planned IPO in 2006 from Inotera Memories, a JV between Infineon and Nanya Technology.

* Imminent IPOs on London`s AIM by Celoxica, an electronic design automation developer; and Ex Libris, a provider of library software.

* Delayed IPOs in Taiwan by LCD manufacturers Toppoly Optoelectronics and RiTdisplay.

* Motorola will sell-off its automotive products unit for over $1 billion.

* The winner of the battle for control of Danish telecommunications giant, TDC. A consortium headed by UK-based Apax Partners is heading the race.

* A Middle Eastern acquisition by MTN.

* Alltel`s spin-off or sell-off of its local phone business.

* The possible sell-out by Vonage, the private Internet telephony start-up, which is also looking at an IPO.

* The option of a sell or IPO from Caudwell, the UK telecommunications group.

* The buyer for UK-listed Protec, a security and surveillance company.

* Worldwide biometric industry revenue is expected to reach $1.5 billion this year and $5.3 billion by 2010, according to International Biometrics Group.

* According to IDC, the worldwide storage market grew 11.8% for Q205 compared to Q204, with EMC still the top vendor with a market share of 30.6%.

* According to Gartner, worldwide CRM new licence revenue grew to $3.4 billion in 2004, a growth of 2% from 2003.

* According to IDC, PC shipments worldwide are expected to reach 110 million in the second half of 2005, with total 2005 shipments expected at 204.6 million.

* According to IDC, the worldwide security appliance market grew to $613 million in Q205, up 16.6% from the previous year.

* According to IDC, the digital consumer semiconductor market totalled $10.4 billion in 2004, up 23.7% from the previous year.

* JSE All share index: Up 1.5%

* Nasdaq: Down 2.7%

* Top SA share movements: Cape Empowerment Trust (+33.3%), Digicor (+11.4%), Elexir (-50%), I-Solutions (+36.4%), Metrofile (+11.9%), Sekunjalo (+13.2%), Stella Vista (-23.1%), Synergy (+21.4%) and Zaptronix (+50%).

* Top international share movements: DA Consulting Group (-33.3%), Deal Media Group (-44.1%), Enherent (+71.4%), Entrada Networks (-56.7%), Exabyte (+30%), NeoMagic (+42%), Psion (+156.8%), Qonnectis (+46%), Technology Solutions (+27.2%) and Visual Defence (-26.3%).

It seems the re-drafting of the Convergence Bill has been completed and has addressed most of the major criticisms that had been raised with the original draft. Let`s hope that this is so and that the final version can be approved timeously. It is urgently needed, as is the related draft ICASA Amendment Bill and, of course, so is the ICT BEE charter, which has still not seen the light of day.