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Broadcom splashes out on Symantec

The company acquired Symantec’s enterprise business for $10.7 billion.
Read time 8min 20sec

Broadcom’s Symantec deal dominated the international ICT market last week. At home, Cell C was in the spotlight.

Key local news

  • Satisfactory interim numbers from MTN, with revenue up 15.5% and profit up 7.7%.
  • A full-year loss from Ellies, with revenue down 1%.
  • New JSE cautionaries by Cell C and Jasco Electronics.
  • The appointments of Tauriq Keraan as CEO of TymeBank; and Douglas Craigie Stevenson as CEO of Cell C.

Key African news

  • Good half-year numbers from MTN Ghana, with revenue up nearly 20% and profit up10.2%.
  • The appointment of Brendon Hall as Axis Communications’ sales manager, Africa.

Key international news

Apple is under investigation in Russia following a complaint from Kaspersky Lab.

  • Accenture acquired Northstream, a Swedish-based consultancy to communications service providers and networking services vendors.
  • Amdocs bought TTS Wireless, a privately-owned provider of mobile network engineering services specialising in network optimisation, planning and software-enabled solutions.
  • Broadcom purchased Symantec’s enterprise business for $10.7 billion.
  • Cambium Networks acquired Riverbed’s Xirrus WiFi products and cloud services.
  • Cisco bought Voicea, a provider of a powerful transcription service that blends AI and automated speech recognition to unlock the power of any collaboration, such as meetings and calls.
  • Claris purchased Stamplay, an Italian start-up that helps app makers weave data from cloud-based programs such as Slack Technologies and Box into their custom applications.
  • Communications & Power Industries acquired Satcom Technologies, the antenna systems business of General Dynamics Mission Systems, a business unit of General Dynamics.
  • Diodes bought Lite-On Semiconductor, a Taiwan-based supplier of “green” power-related discrete and analogue semiconductor devices, for $428 million.
  • Entercom purchased Pineapple Street Media, an award-winning independent producer of top-rated podcast content, and Cadence13, an industry leader in podcast creation and distribution.
  • Groupon acquired Presence AI, a text and voice communication start-up.
  • HPE bought MapR, one of several big data companies that have struggled since raising large investments several years ago.
  • Leidos purchased IMX Medical Management Services, a URAC-accredited commercial independent review organisation.
  • ManTech International acquired the H2M Group, which offers a range of services to the intelligence community.
  • Mastercard bought the account-to-account business of Danish payment-technology company Nets for EUR2.85 billion.
  • McAfee purchased NanoSec, a cloud security start-up.
  • Park Place Technologies, one of the world’s fastest growing solution providers, acquired Entuity, a network monitoring software specialist.
  • Roper Technologies purchased iPipeline, a provider of cloud-based software solutions for the life insurance industry.
  • Russia's Rostelecom acquired Alliance Telecom, an outfit that provides Internet and TV services.
  • Salesforce bought ClickSoftware, an Israeli software developer, for $1.35 billion.
  • Snap-on purchased Cognitran, a UK-based firm specialising in flexible, modular and highly scalable SaaS products for OEM customers and their dealers, in a deal worth $31 million.
  • SurveyMonkey acquired GetFeedback for $68 million in a deal designed to bolster its presence among enterprise customers.
  • Synopsys boughtQTronic, a leader in simulation, test tools and services for automotive software and systems development, headquartered in Germany.
  • Singapore’s state investment firm Temasek Holdings purchased D’Crypt, a cyber security firm, for $72.3 million.
  • Viacom, through one of its subsidiaries, acquired Paws, the entity holding global intellectual property rights to the Garfield and US Acres franchises.
  • Vonage bought Over.ai, an Israeli-based conversational artificial intelligence specialist for enterprise communications.
  • Dragoneer Investment Group led a $460 million investment in Sweden-based Klarna, an online payments firm.
  • Softbank made a $200 million investment in anti-virus start-up Cybereason.
  • A federal appeals court rejected Facebook's effort to undo a class action lawsuit claiming it illegally collected and stored biometric data for millions of users without their consent.
  • FileMaker, an Apple subsidiary, whose tools help business users make custom apps without having to write as much computer code as a from-scratch app, will now be called Claris International.
  • Apple is under investigation in Russia following a complaint from Kaspersky Lab that the former may be abusing its dominant market position.
  • Huawei Technologies has unveiled its proprietary operating system (Harmony) for use in smartphones and other devices.
  • Excellent quarterly results from RichWave Technology (back in the black) and TPK (back in the black).
  • Very good quarterly figures from Aspen Technology, CyberArk Software and IEC Electronics.
  • Good quarterly numbers from Accton Technology, Alarm.com, Ansys, Camtek, ChipMOS Technologies, CSG Systems International, Envestnet (back in the black), EPAM Systems, Genpact, j2 Global, MTS Systems, Nice, Sapiens International, TTEC Holdings and Workiva (back in the black).
  • Good half-year figures from SDL and TT Electronics.
  • Satisfactory quarterly results from Alpha & Omega Semiconductor, Amdocs, Chicony Electronics, Cogent Communications, CRA International, Deutsche Telekom, Diodes, Discovery, Entercom Communications, ePlus, ESCO Technologies, ICF International, Identiv (back in the black), Itron, Microchip Technology, NetEase, Shenandoah Telecommunications, Symantec (back in the black), Tactile Systems Technology, Trend Micro, Ubiquiti Networks, Viacom and Yelp.
  • Satisfactory half-year numbers from Ultra Electronics Holdings.
  • Mediocre quarterly results from Activision Blizzard, Amtech Systems, ARC Document Solutions, Axcelis Technologies, Digital International, DXC Technology, Himax Technologies, Information Services Group, Insight Enterprises, Liberty Global, MDC Partners, ON Semiconductor, Pitney Bowes, Skyworks Solutions, SMIC, Stamps.com, TechTarget and TransAct Technologies.
  • Mediocre half-year figures from HannStar Display.
  • Mixed quarterly figures from Bottomline Technologies, Cable One, Cabot Microelectronics, Changyou.com, Ebix, FIS, IIJ, KLA, PC-Tel, RadNet, Softbank, Sogue, Switch, Take Two Interactive Software and Vonage, with revenue up but net income down; and from Airgain (back in the black), CenturyLink, CPSI, GCP Applied Technologies (back in the black), General Interface Solution, Gilat Satellite Networks, Key Tronic (back in the black), Maxar Technologies (back in the black), Nuance Communications (back in the black), Team (back in the black), Telecom Argentina and Xperi, with revenue down but net income up.
  • Mixed half-year figures Infibeam Avenues, with revenue down but net income up.
  • Very poor quarterly figures from Alaska Communications.
  • Quarterly losses from 3D Systems, Acacia Communications, Adesto Technologies, Allot Communications, Altair, Appian, Applied Optoelectronics, Arlo Technologies, Asure Software, Avalara, Avid Technology, Avnet, Cambium Networks, Cardlytics, Cincinnati Bell, Cohu, CommScope, comScore, Conduent, Dropbox, EchoStar, Entravision Communications, Everbridge, Everspin Technologies, ForeScout Technologies, Frontier Communications, GTT Communications, Harte-Hanks, i3 Verticals, Infinera, Inseego, Internap, Japan Display, LSC Communications, Lumentum, Lyft, Mimecast, NeoPhotonics, NII Holdings, nLight, One Stop Shop, PAR Technology, Pegasystems, Poly, QuickLogic, Quotient Technology, Red Violet, Rimini Street, Roku, SailPoint Technologies, Scientific Games, Shutterfly, Sohu.com, Sonos, Synacor, Synaptics, Synchronoss Technologies, Talend, Tetra Technologies, The ExOne Company, Toshiba, Uber, Universal Electronics, Upland Software, Veeco Instruments, Veritone, Viasat and Westell Technologies.
  • A half-year loss from Dialight.
  • The appointments of David Blood as chairman of Dialight; Michael Hurlston as CEO of Synaptics; Mike Rosenbaum as CEO of Guidewire Software; Marcus Ryu as chairman of Guidewire Software (was CEO); Clifford A Skelton as CEO of Conduent; Jacob Suen as CEO of Airgain; and Todd Swanson as interim CEO of Finisar.
  • The resignations of Wayne Edmunds, chairman of Dialight; and Johan Dennelind, CEO of Telia.
  • The departures of Peter Gassner, chairman of Guidewire Software (stays on as an independent director); Michael Hurlston, CEO of Finisar; and Jim Sims, CEO of Airgain (stays on as chairman).
  • The death of Martin A Kaplan, chairman of Lumentum.

Research results and predictions

South Africa:

  • SA’s spend on Internet of things technologies is set to top $1.9 billion by the end of the year, according to IDC.

Worldwide:

  • In 2021, artificial intelligence augmentation will create $2.9 trillion of business value and 6.2 billion hours of worker productivity globally, according to Gartner.
  • The wearable tech industry was worth nearly $23 billion in 2018 and is forecast to grow at a CAGR of 19% to reach $54 billion by 2023, according to GlobalData.
  • Worldwide spending on customer experience technologies will total $508 billion in 2019, an increase of 7.9% over 2018, according to IDC.
  • ·         Worldwide spending on blockchain solutions is forecast to be nearly $15.9 billion in 2023, according to IDC. It expects blockchain spending to grow at a robust pace throughout the 2018-2023 forecast period, with a five-year CAGR of 60.2%. Blockchain spending in 2019 is forecast to be $2.7 billion, an increase of 80% over 2018.
  • ·         Global smartphone shipments fell in the second quarter, marking seven consecutive quarters of year-over-year declines, according to IHS Markit. They declined to 331.2 million units in the second quarter of 2019, down 3.6% from the same period last year.
  • ·         Worldwide sales of semiconductors reached $98.2 billion during the second quarter of 2019, a small increase of 0.3% over the previous quarter, but 16.8% less than the second quarter of last year, according to the SIA.
  • ·         Global smartwatch shipments grew 44% on year in Q219, according to Strategy Analytics.

Stock market changes

  • JSE All share index: Down 1.3%
  • FTSE100: Down 2.1%
  • DAX: Down 1.5%
  • NYSE (Dow): Down 0.7%
  • S&P 500: Down 0.5%
  • Nasdaq: Down 0.6%
  • Nikkei225: Down 1.9%
  • Hang Seng: Down 3.6%
  • Shanghai: Down 3.2%

Look out for

International:

  • Further acquisitions from Accenture following the appointment of a new CEO.

South Africa:

  • Helios Towers, one of Sub-Saharan Africa’s largest mobile phone tower operators, reviving plans for an IPO.

Final word

Fortune magazine has released its 2019 ‘The Global 500’ list. Included in the top 100, from a technology viewpoint, are:

  • 11: Apple (no change)
  • 13: Amazon.com (was 18)
  • 15: Samsung Electronics (was 12)
  • 23: Hon Hai Precision Industry Hai Precision Industries (was 24)
  • 25: AT&T (was 20)
  • 37: Alphabet (was 52)
  • 43: Verizon Communications (was 37)
  • 56: China |Mobile Communications (was 53)
  • 60: Microsoft (was 71)
  • 61: Huawei Investment & Holding (was 72)
  • 64: NTT (was 55)
  • 75: Comcast (was 80)
  • 84: Dell Technologies (was 93)
  • 90: Deutsche Telekom (was 81)
  • 98: Softbank Group (was 85)

Further analysis of the list will follow next week.

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