KKR buys BMC

The acquisition, led by Bain Capital Private Equity and Golden Gate Capital, resulted in a deal worth $8.5 billion.

Read time 6min 40sec
Paul Booth.
Paul Booth.

BMC changing hands again dominated the international ICT market last week.

At home, Ayo Technology's restructuring regarding Kilomix was the main local story.

Key local news

* Excellent year-end numbers from Huge Group, with revenue up 63.2% and profit up 188.7%.
* Mixed year-end figures from Telkom SA, with revenue up 0.1% but profit down 18.1%.
* Mixed interim numbers from Reunert, with revenue up 9.5% but profit down 4.5%.
* Mediocre full-year numbers from ISA, with revenue down 31% and profit down 39%.
* Randvest Technology Holdings, a new investment vehicle chaired by former BCX CEO Isaac Mophatlane, acquired ICT infrastructure provider Bridging Technologies SA.
* Ayo Technology Solutions made a R990 million investment in Kilomix, which owns 30% of BTSA, a subsidiary of the BT Group.
* A renewed JSE cautionary by Labat Africa.
* The appointments of Jonas Bogosh as CEO of BCX; and Kate Mollett as Veeam Software's regional manager for SA.
* The resignation of Ian Russell as CEO of BCX.
* The retirement of Telkom's group CIO, Len de Villiers.

Key African news

* Very good year-end figures from Econet Wireless Zimbabwe, with revenue up 34% and profit up 265%.
* MTN Group's subsidiary, Scancom (MTN Ghana), launched an IPO in Ghana with the intention of listing on the Ghana Stock Exchange.
* The appointment of Claude Schuck as Veeam Software's regional manager for Middle East and Central Africa (was regional manager for SA).

Key international news

* Ciena acquired privately held Packet Design, a provider of network performance management software focused on Layer 3 network optimisation, topology and route analytics.
* Hero Electronix, the electronics and technology venture of the Hero Group, bought India-based Zenatix, an IOT player.
* Iron Mountain purchased EvoSwitch Netherlands and EvoSwitch Global Services for EUR205 million.
* KKR acquired BMC, a systems software provider owned by a private investor group led by Bain Capital Private Equity and Golden Gate Capital, together with GIC, Insight Venture Partners and Elliott Management, in a deal worth $8.5 billion. The latter group took BMC private in 2013 for $6.9 billion.
* Eric Carreel bought Nokia's digital health business, including activity trackers and smartwatches.
* Zynga purchased privately held mobile game developer Gram Games for $250 million.
* Alibaba made an additional $488 million investment in, the online food delivery start-up.
* Alibaba led a $1.38 million investment in ZTO, a Chinese courier firm.
* Deutsche Telekom made a EUR284 million additional investment (5%) in Greek telco, Hellenic Telecom, raising its stake to 45%.
* NetEase invested in Bungie, an independent employee-owned studio.
* Rakuten, the Japanese e-commerce firm, invested in Azimo, a UK-based payments group.
* SoftBank Group made a $2.25 billion investment in GM Cruise Holdings, the carmaker's autonomous vehicle unit.
* A federal judge has dismissed Kaspersky Lab's lawsuit challenging the US government's ban on its products, meaning the prohibition will remain in effect.
* Tencent Holdings is suing two companies under domestic rival Toutiao for alleged defamation, escalating its growing feud with the firm behind what is currently the world's most downloaded iPhone app.

A federal judge has dismissed Kaspersky Lab's lawsuit challenging the US government's ban on its products.

* French telco Iliad has launched its operations in Italy, becoming the fourth mobile operator in that country.
* Tencent Holdings, which owns China's top social media app WeChat, has scrapped an investment of up to $4.7 million in a content start-up that has been criticised online and by state media for its handling of copyright issues.
* Toshiba has completed the $18 billion sale of its chip unit to a consortium led by US private equity firm Bain Capital.
* Very good quarterly figures from Analog Devices, Keysight Technologies and
* Good quarterly numbers from Kulicke & Soffa, QAD (back in the black), Tech Data and VMware.
* Satisfactory quarterly results from Chicony Electronics, Descartes Systems, Elbit Systems, HP and Marvell Technology Group.
* Mediocre quarterly results from Cellcom Israel.
* Mixed quarterly figures from Ciena and Partner Communications, with revenue up but net income down; and from Semtech, with revenue down but net income up.
* Quarterly losses from Box, Daktronics, Jianpu Technology, Workday and Yext.
* The appointments of Nikesh Arora as CEO and chairman of Palo Alto Networks; Mark McLaughlin as vice-chairman of Palo Alto Networks (was CEO); Kent Thexton as interim CEO of Sierra Wireless; and Michael Zeisser as chairman of XO Group.
* The resignation of Ilan Levi, CEO of Stratasys.
* The retirement of Jason Cohenour, CEO of Sierra Wireless.
* The departure of David Liu, chairman of XO Group.
* A very good IPO on London's AIM market by Codemasters, a video games company.

Research results and predictions

* Global sales of smartphones to end-users returned to growth in the first quarter of 2018, with a 1.3% increase over the same period in 2017, according to Gartner. Compared to the first quarter of 2017, sales of total mobile phones stalled and reached 455 million in Q118.
* Worldwide shipments of hardcopy peripherals increased 1.7% to nearly 23.8 million units in Q118, according to IDC.
* After declining 0.3% in 2017, the worldwide smartphone market is expected to contract again in 2018 before returning to growth in 2019 and beyond, according to IDC. It forecasts a drop of 0.2% in 2018 to 1 462 million units, which is down from 1 465 million in 2017 and 1 469 million in 2016. Looking further out, IDC expects the market to grow roughly 3% annually from 2019 onwards, with worldwide shipment volume reaching 1 654 million in 2022 and a five-year CAGR of 2.5%.
* Vendor revenue in the worldwide server market increased 38.6% year-over-year to $18.8 billion during Q118, according to IDC. Worldwide server shipments increased 20.7% year-over-year to 2.7 million units.
* Worldwide spending on augmented reality and virtual reality is forecast to achieve a five-year CAGR of 71.6% over the 2017-2022 forecast period, according to IDC.
* Global shipments of personal computing devices, comprising traditional PCs (desktop, notebook and workstation) and tablets (slate and detachable), are expected to decline 3.5% year-over-year in 2018, which is an even steeper decline from the 2.7% in 2017.

Stock market changes

* JSE All share index: Up 0.6%
* FTSE100: Down 0.4%
* DAX: Down 1.7%
* NYSE (Dow): Down 0.5%
* S&P 500: Up 0.5%
* Nasdaq: Up 1.6%
* Nikkei225: Down 1.2%
* Hang Seng: Down 0.3%
* Shanghai: Down 2.1%

Look out for

* Verint Systems merging its security division with Israeli cyber surveillance firm NSO Group, in a deal worth about $1 billion.

South Africa:
* Resolution regarding spectrum allocation in SA.

Final word

Fortune magazine has published its 64th running of its Fortune 500 list. In total, Fortune 500 companies represent two-thirds of the US GDP, with $12.8 trillion in revenue, $1 trillion in profit, $21.6 trillion in market value, and employ 28.2 million people worldwide.

Included in the top 100 from a technology perspective are:
* 4: Apple (was three)
* 8: (was12)
* 9: AT&T (no change)
* 16: Verizon Communications (was 14)
* 22: Alphabet (was 27)
* 30: Microsoft (was 28)
* 34: IBM (was 32)
* 35: Dell Technologies (was 41)
* 46: Intel (was 47)
* 58: HP (was 61)
* 62: Cisco (was 60)
* 74: Charter Communications (was 96)
* 76: Facebook (was 98)
* 82: oracle (was 81)
* 83: Tech Data (was 107)
* 99: General Dynamics (was 90)

Further analysis will follow next week.

See also