VMware hits the gas
The company spent billions of dollars on three businesses this week: Carbon Black, Intrinsic and Pivotal Software.
Three acquisitions by VMware dominated the international ICT market last week.
At home, concern about the viability of Cell C as an ongoing business was high on the agenda.
Key local news
- A negative trading update from Blue Label Telecoms.
- The Carlyle Africa (Buyout) Fund acquired SA-headquartered IsoMetrix, a supplier of integrated software for governance, risk and compliance.
- Independent management consulting firm IQbusiness bought Genex Insights, the South African-based insights and market research company.
- Eight high-potential fintech start-ups have been awarded R2 million each in entrepreneurial packages by the AlphaCode Incubate initiative.
Key African news
- Jumia, Africa’s largest e-commerce operator, is struggling with internal fraud and legal threats.
- The appointments of Isa Ali Pantami as Nigeria’s minister of communication; Fadi Pharaon as SVP and head of market area Middle East and Africa at Ericsson; and Mercy Wanjau as interim DG of the Communication Authority of Kenya.
- The departures of Rafiah Ibrahim, SVP and head of market area Middle East and Africa at Ericsson (moves elsewhere within Ericsson); and Francis Wangusi, DG of the Communication Authority of Kenya.
Key international news
- Accenture acquired Parker Fitzgerald, a strategic advisor and consulting partner to global financial institutions, thus further enhancing the business and technology capabilities within its finance and risk practice.
- Com & Tel Media bought Cellcast’s operating subsidiary, Cellcast UK, which provides interactive television programming, for £375 million.
- Descartes Systems Group purchased BestTransport.com, a cloud-based transportation management system provider focused on flatbed-intensive manufacturers and distributors.
- Elastic acquired Perched, a training and consulting company focused on security analytics, threat hunting and security operations.
- Goodix Technology bought the assets of NXP Semiconductors’ voice and audio solutions business.
- Lightview Capital purchased Buchanan Technologies, a solution provider.
- Microsoft acquired jClarity, a UK-based start-up aimed at optimising Java workloads on Azure.
- Nazara Technologies, an India-based mobile gaming start-up, bought 67% of Sportskeeda, a sports content Web site.
- ScanSource purchased intY, a UK-based distributor of cloud services.
- Siris, a private equity firm, acquired TPx Communications, a service provider.
- Sony Interactive Entertainment bought privately held Insomniac Games.
- Splunk purchased SignalFx, a data analytics software maker, for $1.05 billion.
- United Business Mail acquired LSC’s Commingle business for $11.25 million.
- Upland Software bought Cimpl, a cloud-based telecom expense management platform.
Look out for Naspers-owned PayU acquiring India-based online consumer lending platform PaySense.
- VMware acquired Carbon Black ($2.1 billion), a cyber security provider; Intrinsic, a security start-up; and Pivotal Software ($2.7 billion), a provider of tools for software developers working on cloud services.
- BlackRock, a private equity company, invested in Cofense, a cyber security company.
- Amazon made a 49% investment in Future Coupons, in a deal that gives Amazon the option to buy all or part of Future Coupons’ shareholding in Future Retail, an Indian supermarket chain operator.
- Apple has filed a copyright infringement lawsuit against Corellium, a software company that allegedly has copied its operating system, graphical user interface and other aspects of its devices without permission; it wants a federal judge to stop the violations.
- DXC Technology has won a $666 million award in its dispute with Hewlett Packard Enterprise.
- Qualcomm has won a partial stay against the enforcement of a sweeping anti-trust ruling in a lawsuit brought by the US Federal Trade Commission.
- BT will delist from the New York Stock Exchange.
- Facebook's proposed digital currency Libra faces an anti-trust probe by the European Union regulator.
- Maxcom Telecomunicaciones, a Mexican telecommunications company, has filed for Chapter 11 bankruptcy protection, to enable it to restructure its debt.
- The US Department of Justice is working with state attorneys general to investigate the market power of technology companies.
- Qualcomm has reached a new patent licensing deal with LG Electronics, helping land its technology in a suite of wireless devices.
- Excellent quarterly results from Viomi Technology.
- Good quarterly numbers from Fabrinet, Formula Systems, Synopsys and VMware.
- Good half-year figures from MTI Wireless Edge and Soft-World International.
- Satisfactory quarterly results from HP, Keysight Technologies and OSE (back in the black).
- Satisfactory half-year numbers from Computacenter and Millicom International.
- Satisfactory year-end figures from Arcontech Group.
- Mediocre quarterly results from Analog Devices and Cheetah Mobile.
- Mediocre half-year figures from Gamania Group and Sopheon.
- Mixed quarterly figures from Baidu, Mobile TeleSystems, Opera, Photronics, Salesforce.com, Weibo and Xiaomi, with revenue up but net income down; and from ScanSource, Sina and Zayo Group, with revenue down but net income up.
- Mixed half-year figures from BATM Advanced Communications (back in the black), Giantplus Technology and Tribal Group, with revenue down but net income up.
- Quarterly losses from CooTek, Cree, Flexion Mobile, Intuit, iQiyi, Jumia Technologies, MediaValet, Pinduoduo, Pure Storage, QAD, SEA, Splunk and Yunji.
- Half-year losses from cloudBuy, Finablr, Powerchip Technology and Razer.
- The appointments of Timothy Duitsman as CEO of Westell Technologies; Enrique Lores as CEO of HP; Sandip Mukerjee as CEO of Tessco Technologies; Pratik Pal as CEO of Tata Digital; Amr Refaat as CEO of Gulf Business Machines’ regional operations; and Ravinder Takkar as CEO of Vodafone Idea.
- The resignation of Balesh Sharma, CEO of Vodafone Idea.
- The retirement of Murray Wright, CEO of Tessco Technologies.
- The departures of Alfred John, CEO of Westell Technologies; and Dion Weisler, CEO of HP.
- A planned IPO from Uhuru, a Japanese IOT technology company backed by SoftBank, on London’s AIM market. It is set for October.
Research results and predictions
- The 2019 Gartner “Hype Cycle for ICT in Africa” features three technologies that will have a transformational impact on businesses in Africa within the next 10 years: smart city frameworks, the Internet of things (IOT) and low earth orbit satellite systems.
- In 2020, worldwide 5G wireless network infrastructure revenue will reach $4.2 billion, an 89% increase from 2019 revenue of $2.2 billion, according to Gartner.
- The market for 3D printed medical devices and pharmaceuticals will be worth $6.1 billion by 2029, which expects a CAGR of up to 18% in certain sub-segments, according to IDTechEx.
Stock market changes
- JSE All share index: Up 0.2%
- FTSE100: Down 0.3%
- DAX: Up 0.4%
- NYSE (Dow): Down 1%
- S&P 500: Down 1.4%
- Nasdaq: Down 1.8%
- Nikkei225: Up 1.4%
- Hang Seng: Up 1.7%
- Shanghai: Up 2.6%
Look out for
- Mitel Networks acquiring Avaya.
- BT selling off over £100 million of telecoms infrastructure assets in the Netherlands, as well as its Irish assets.
- Buyout firm KKR selling off Epicor Software.
- South Africa:
- Naspers-owned PayU acquiring India-based online consumer lending platform PaySense.
Fast Company magazine recently published its 2019 Best Workplaces for Innovators list. Included from a technology perspective are:
- Activision Blizzard, the video games publisher;
- Attivo Networks, a cyber security firm;
- Blue Prism, the robotic process automation company;
- Cloudflare, a company that creates products that improve Web site security and performance;
- Influxdata, a database firm;
- Pivotal Software;
- Rubikloud Technologies, a company that combines retail data with machine learning and artificial intelligence to help businesses market and manage customer experiences;
- SAS; and
- Workiva, a provider of cloud-based data management tools.