The ever altering global business dynamics are inspiring leading technology majors, including Google, Salesforce, Apple, Twitter, Dell, Oracle, Microsoft and Intel among others to plunge into acquisition spree to bolster their global position. The mutually beneficial strategic move enables the tech majors to expand their business footprints, acquire new technology. Planned keeping in focus business interests of the stake holders, the acquisition offers win-win proposition to the concerned enterprises.
Market trends in the sphere suggests, irrespective of turnover, competency, market size, enterprises are entering into alliance for acquisition. Reason may vary from enterprise to enterprise, for some; it’s for innovation, business expansion, while for some it could be to overcome market challenges.
Here are some of the prominent acquisition deals of 2016:
Microsoft acquires Linkedin
Global IT software giant, Microsoft struck a whooping deal valued at $26.2 billion to acquire professional social media platform, Linkedin in June. It’s the biggest ever acquisition by the tech giant in its history till date. The deal received splendid response from the market; shares of the Linkedin witnessed a remarkable surge.
Hailed as the historic deal by the head honchos of both the companies, the mega acquisition was struck in September with valuation standing at $67 billion. The game changing deal would propel Dell into the important and constantly surging market of cloud computing.
Verizon inks deal with Yahoo
Globally acclaimed mobile media enterprise, Verizon acquired Yahoo in July. The deal that was valued at $4.83 enables Verizon to leverage Yahoo’s core competency, including advertising, content, search and mobile activities to further its business objectives.
The strategic acquisition allows Verizon, a telecom giant to diversify and strengthen its presence in media and advertising realms.
Avago acquires Broadcom
The month of February saw Avago Technologies buy Broadcom for $37 billion. By inking the acquisition deal, the rival chipmakers now command a formidable share in the wireless devices’ high surging global market. Since the last couple of months, top executives of both the enterprises have been engaged in hectic parleys to iron out differences and overcome gaps. Prior to this, Avago also acquired Emulex and LSI.
In-addition, the other pivotal acquisitions of the year 2016 include Turi, an artificial intelligence startup by Apple ($200 million), MetaMind, a deep learning startup by Salesforce ($75 million), Itseez that develops computer vision algorithms and implementations for embedded and specialized hardware by Intel and Moodstock, a startup into image recognition technology by Google.
The reports on acquisitions and mergers in 2016 indicate that somewhere around 40 deals were struck in the technology sphere. Market experts on the subject absolutely lend their support for acquisition and merger. A well structured deal implemented cautiously with nut and bolts helps both the companies in the long run. Over the years, enterprises are leveraging the phenomenal business strategy to scale-up and accomplish their business goals.