The tech space has seen massive growth in 2019, thanks to large scale mergers and acquisitions by tech giants. As the competition becomes more intense, investors, VC firms, and private equity behemoths are stressing on a more rationalized approach to start-ups. The new-age firms were clearly instructed to minimize promotional costs leading to cash burnout and focus on a sustainable business model that would give profits.
As analysts figure out, with the world economy expected to slow down in 2020, funding rounds and scale will get tighter. In this situation, scaling up and revenue model no longer seems sustainable. The profitability of the unicorns is also been looked at with a hawks eye. In this scenario, let us look at some of the most prolific acquisitions in 2019 that have pumped up the tech space. At the beginning of the year 2019, it was expected that technology acquisition would increase by 73%. As the year comes to an end, let us look at the most significant 2019 mergers and acquisitions.
List of recent mergers and acquisitions 2019
Uber acquires ride-hailing rival Careem
One of the essential acquisitions 2019 was to procure the rival ride company of the Middle East, which is Careem by Uber. Well, the only straightforward motive was to have dominance in the prevailing geography. Careem operated in approx 14 countries, including Russia, China, and Southeast Asia. In other words, while buying this company, it could easily take dominance over the vast region. Dara Khosrowshahi, the CEO of Uber have categorically mentioned that their aim was to “build new products and try new ideas across not one, but two, strong brands.”
Salesforce acquires Tableau
One of the biggest acquisitions in the history of Salesforce was the stock acquisition of Tableau in June 2019, worth 15.7 billion Dollars. The major purchase was made approximately a week later when Google acquired Looker. Salesforce is known for its acquisition to enhance the value of their multitude suite of products. Recently, Salesforce acquired MuleSoft, which is the integration platform that connects Software-as-a-Service offering and enterprise infrastructure.
Mellanox acquired by Nvidia
Mellanox earlier was a provider of high-end networking equipment. In March 2019, Nvidia acquired it at 6.9 billion Dollars. It is said that this deal was one of the biggest mergers and acquisitions 2019 made by Nvidia. The company expects to boost the chip-making infrastructure and increase market share. As per the statement of CEO of Nvidia, Jensen Huang, datacentres are essential due to the increase in the workload triggered by AI, data analytics and machine language. It is estimated that future datacentres would be comprised of high-performance computers requiring the best chips.
Google acquired Looker
One of the most essential tech mergers 2019 was Google acquiring the major business intelligence platform named Looker. The CEO of Google Cloud, Thomas Kurian set a goal for the brand to compete better with rival companies like Microsoft and AWS. Even, Sundar Pichai feels quite excited to welcome Looker into Google Cloud platform. He says he wants to work together to solve some crucial problems faced by the users.
Attunity acquired by Qlik @ $560 million
One of the majors of BI, Qlik took over Attunity in February 2019. Attunity is a renowned company that provides integration and replication of conventional and streaming data and data ingest. In the years 2017 and 2018, Qlik acquired Idevio, a geospatial analytics company and Podium Data focusing on data catalog respectively. With the strength of Attunity, the real-time data delivery all across the environments of complex cloud would allow Qlik to lead in data thereby helping the enterprise to align with analytics strategy.
HPE acquired Cray in May
HPE or Hewlett Packard Enterprise in May 2019 claimed to acquire Cray, the makers of supercomputers @ 1.3 billion dollars. At present, Cray is in contract with the government agency to make the first-ever exascale supercomputers. As per the statement of HPE CEO, Cray is the leading manufacturer of supercomputing and with the amalgamation of top-notch teams and technology, they will be able to grab the opportunity to drive the next generation while providing them with the high-performance supercomputers.
FIS acquired Worldplay at 35 billion Dollars
The global leader of financial services technology, FIS announced to acquire Worldplay which is the renowned payment technology processing annual transactions worth 40 billion. It supports more than 300 types of payment processing approx 126 currencies in 146 countries. In the recent acquisitions 2019, it would be the greatest deal on the payment based tech industry.
Honey acquired by PayPal @ 4 billion Dollars
One of the largest tech mergers 2019 by PayPal is Honey Science Corporation. As per the report, it is the most transformative acquisition of PayPal that would provide a wide folio of services to enhance the shopping experience of the consumers. Apart from this, it would take viable steps to make it a bit affordable and rewarding at the same time. While including the complementary consumer goods and services of Honey with PayPal to drive maximum engagement and play a viable role in the daily life of the customers.
Acquisition of Ultimate Software
In March, the acquisition of Ultimate Software by an investor group Hellman & Friedman was announced. On one hand, Ultimate software is the leading provider of HCM or Human Capital Management worldwide while H&F is the leading and private-based equity investment firm. The founder of the Ultimate said that being funded by the private equity firm, it has enhanced their ability to make long-term decisions pertaining to investment.
SendGrid acquired by Twilio
The leading platform of email API, SendGrid announced its acquisition by Twilio in February. Twilio is an essential enterprise software and services based on the video, chat, and voice. It was the better offering or deal with SendGrid as email was not in their arsenal till now. The CEO of Twilio says that it is the remarkable mergers and acquisitions 2019 in which the two leading and developer-focused platform of communication would work together to create an amazing platform for all such companies that focus on customer engagement.
Mentioned above were the few common acquisitions made in the year 2019. Top-notch companies are merging and amalgamating with each other to enhance and enrich the user’s engagement. This increases the consumer base, improves efficiency and allows greater diversification of the parent company. Tech industries are working in collaboration to minimize competition and create a bloc so that the scope of investor returns and customer satisfaction can be improved substantially.