DataCore

All M&As (70) in 2012

70 compared to 61 in 2011: top ones are ...

By Jean-Jacques Maleval on 2013.01.15
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Since more than a decade we analyze the merger and acquisition trends in
the worldwide storage industry, which has allowed us the proper
perspective from which to gauge the evolution over time.

OF ACQUISITIONS
SINCE 1998
IN WW STORAGE INDUSTRY

Year     ≠
1998 48
1999 59
2000 61
2001 64
2002 45
2003 53
2004 51
2005 75
2006 105
2007 90
2008 73
2009 49
2010 70
2011 61
2012 70
TOTAL 974

(Source: StorageNewsletter.com)

In 2006, there was a record of 105 M&As. Compared to 2011, the movement was going up in 2012 with 70 acquisitions, a 15% annual growth.

Two of them reached
more than one billion dollar last year:

 

  • Elpida by Micron Technology for $2,500 million
  • Quest Software by Dell for $2,400 million

The other biggest ones at more than $100 million being:

  • IM Flash Technologies by Micron for $600 million
  • XtremIO by EMC for $430 million
  • LeCroy by Teledyne Technologies for $291 million
  • Endace by Emulex for $130 million
  • Cloupia by Cisco for $125 million
  • Assets of QLogic by Intel for $125 million, and
  • LiveOffice by Symantec for $115 million

TOTAL AMOUNT OF ACQUISITIONS SINCE 1998
(here we include only the acquisitions
when the price is known)

 Year ≠  of
Acqui-
sitions
Total Amount*
Average Price*
 1998  24  61,030  2,543
 1999  22  3,062  139
 2000  38  14,021  369
 2001  27  28,279  1,047
 2002  21  3,101  148
 2003  29  5,494  189
 2004  26  4,781  184
 2005  42  18,690  445
 2006  53  17,366  328
 2007  32  6,855  214
 2008  27  5,715  212
 2009  19  10,458  550
 2010  24  10,548  439
 2011  26  19,431  747
 2012  15  6,875  458
 TOTAL  425  215,707  508

* In $ million
(Source: StorageNewsletter.com)

Looking at the total amount spent by the buyers - when the price of the
acquisition has been revealed -, it was $6.9 billion in 2012 for an
average of $458 million by deal. But be cautious about this average price because it only concerns 15 of the 70 M&As last year. When the amount of the deal is not revealed, it's generally a small figure. It's the case for big companies when they estimated that a small acquisition has no significant impact on their global financial figures. Nevertheless, 15 acquisitions with prices known represent only $6.9 billion in 2012 for an average of $487 million, the figures being 26, $19.4 billion and $747 million respectively in 2011.

Historically, EMC is the most voracious with 69 acquisitions since 1994, and already a new one this month
but is much more quieter now. The company acquired only three storage firms
in 2012, at small prices - excluding XtremIO for $430 million, to be compared to 23 deals in
2007 only.

Historically EMC is largely in front of Seagate (with Seagate Software) with a total
of 28 acquisitions, LSI 17, Veritas Software (now Symantec) 17 (or 35
with Symantec), IBM 19, Iron Mountain 18, Dell 17, and HP and Xyratex 15. Only 11 for NetApp.

Dell records five acquisitions in 2012, Rocket Software, EMC, IBM, Intel, Iron Mountain, Micron three. Imation bought six companies in 2011, but small ones. Dell was the leader in 2010 with five.

Last year we predicted a
relatively quiet year 2012 as huge storage companies, generally the buyers, struggled with the economical crisis. The
consolidation will continue in 2013 because some publicly-traded companies
are in bad shape and there are too many storage start-ups trying
to survive with the only goal to be acquired or dye. Furthermore a trend is not going to stop: storage giants invent about nothing in new killing storage technologies and prefer to buy them by acquiring start-ups. It's less expansive than investing in their own R&D.

The year 2013 will be probably productive. Up to now we have already registered six acquisitions.
We will probably continue to see several M&As in the channel storage
market as usual (11 in 2012), and especially in
online backup and in SSDs because there are too many companies in these two activities.
There were already 13
deals around hard and soft flash and silicon technologies in 2012 and 9 in cloud storage in 2012. Wait also for some deals in big data.
WHO BOUGHT WHOM IN 2012

Mo. BUYER ACQUISITION PRICE in $million ACTIVITY OF ACQUIRED COMPANY
9 Acronis GroupLogic NA Secure mobile enterprise file access, sharing and
sync software
10 Adesto Technologies Atmel (assets) NA Serial flash products and IP
4 Arrow ECS Altimate 64 European storage wholesaler
9 ASP64 Aenix NA Storage and virtualization for enterprises
1 AuthenTec Proxure NA Syncing and cloud-based storage services for PCs and
mobile devices
7 Avnet Magirus NA Pan-European distributor of IT and storage
6 BiTMICRO Networks QualCore Logic (IPs) NA IP and ASIC design for SSDs
10 Carbonite Zmanda 15 In enhanced version of open source backup project
Amanda
11 Cisco Cloupia 125 Software managing pools of computing, network,
storage and VMs as unified whole
3 Connector Systems Techplus Distribution NA Australian distributor
11 Data Storage Corporation Message Logic (assets) NA Dell OEM in intelligent messaging archiving
5 Databarracks SecuriData NA UK online backup provider
10 Datalink StraTech (Midas Medici) 20.3 IT services and solutions including storage
2 Dell AppAssure NA Backup and DR software for Windows applications
12 Dell Credant Technologies NA Solutions to control, manage and secure data sent
from endpoints to servers, storage and cloud
11 Dell Gale Technologies NA Infrastructure automation software for compute,
network and storage
7 Dell Quest Software 2400 Software for systems management, security, data
protection and workspace management
3 Dell SonicWALL NA In security, with small activity in D2D backup and
DR with CDP
12 Dropbox Snapjoy NA Online photo library and software application
6 Dropmysite Orbitfiles NA Singapore's company acquires US-based online backup
firm
3 EMC Likewise Software NA Cross-platform storage software
5 EMC Syncplicity NA Cloud-based synch and share file management provider
5 EMC XtremIO 430 Enterprise SSD-based systems
12 Emulex Endace 130 Network performance management
1 Groupe EET United Digital NA UK company in RAID for Mac (Hive)
9 Hitachi Data Systems Cofio Software NA Software which unifies data protection, workflow and
compliance
9 IBM Butterfly Software NA Analysis and migration of backup and storage data
12 IBM StoredIQ NA Software to discover, analyze, monitor, retain,
collect, de-dupe and dispose of data
8 IBM Texas Memory Systems NA RAM and flash subsystems
    6 Industrial Defender Fandotech NA Backup and DR services
8 Ingram Micro Aptec (assets) NA VAD in Dubai
11 Intel Nevex NA SSD caching software for primary server storage
1 Intel QLogic (assets) 125 InfiniBand business
7 Intel Whamcloud NA HPC storage
12 Iron Mountain Data Backup NA Storage and DR service provider in in Sarasota, FL
12 Iron Mountain DATAPROS Storage and Staffing NA Media storage and management services in Phoenix, AZ
12 Iron Mountain IG2 Data Security NA Data protection and backup tape storage services in
Chicago, IL
1 j2 Global Offsite Backup Solutions NA Phoenix, AZ-based provider of online backup
2 Micron IM Flash Technologies 600 Joint venture NAND facilities between Intel and
Micron
1 Micron VirtenSys NA PCIe I/O virtualization silicon for SSDs
7 Micron Elpida 2500 DRAM manufacturer
10 Microsoft StorSimple NA Cloud-integrated storage solutions
11 NetApp Cache IQ NA Intelligent caching solutions for file-based storage
1 OCZ Technology SANRAD 15 Flash caching and virtualization software and
hardware
5 Oodrive CertEurope NA SaaS to secure digital exchanges
6 Oracle Xsigo NA Director to virtualize I/O for networking and
storage
10 Persistent Systems Doyenz NA Business continuity cloud platform
3 PMC-Sierra Maxim Integrated Products (assets) NA Server storage 12Gb SAS expanders
2 Rambus Unity Semiconductor 35 Non-volatile memory to replace NAND
12 Raytheon SafeNet (assets) NA Government solutions business unit
1 Riverbed Expand Networks 10 WAFS acceleration appliance
1 Rocket Software IBM (assets) NA iCluster business, software for HA and DR
10 Rocket Software OpenTech Systems NA Software for physical and virtual tape migration for
IBM System z
10 Rocket Software Progress Software (assets) NA Integration software for the IBM System z
11 Rocket Software Sirius Software NA Application, interoperability, management and life
cycle software for database
12 Samsung Nvelo NA Software Dataplex for SSD caching
8 SANBlaze Diversified Technology (assets) NA 10Gb ATCA switches
2 SanDisk FlashSoft NA SSD caching software
6 SanDisk Schooner Information Technology NA Flash-optimized SQL
5 Seagate Technology LaCie NA External storage subsystems; price around $150
million?
8 SFS Group Unisteel NA Singapore-based maker of precision components
including for HDDs
6 SK hynix Link_A_Media Devices NA HDD and SSD controllers
6 Stellar Data Recovery YoData NA Oldest data recovery company of Netherlands
10 Stratus Technologies Marathon Technologies NA Application availability software
1 Symantec LiveOffice 115 Cloud-based archiving
1 Synopsys ExpertIO NA Verification IP for PCIe, SAS, SATA, PC and IP
networking protocols
9 Tech Data Specialist Distribution Group NA IT and storage distributor subsidiary of SCH
8 Teledyne Technologies LeCroy 291 Serial data test solutions
4 VaultLogix DataPreserve NA Online backup service provider
3 XOR Media SeaChange (assets) NA Broadcast and storage business

(Source: StorageNewsletter.com)

More than $1 billion M&As
in the history of the storage industry

2001: Compaq by HP, $25,000 million
2005: Veritas by Symantec, $11,000 million
2011: Autonomy by HP, $10,300 million
1998: Digital Equipment by Compaq, $9,600 million
2009: Sun by Oracle, $7,400 million
2011: Hitachi GST by WD, $4,300 million
2005: StorageTek by Sun, $4,100 million
2000: Sterling Software by CA, $4,000 million
2000: Seagate by Suez Acquisition, $4,000 million
2006: Agere by LSI, $4,000 million
2008: Foundry Networks by Brocade, $2,600 million
2012: Elpida by Micron Technology, $2,500 million
2012: Quest Software by Dell, $2,400 million
2010: 3par by HP, $2,350 million
2010: Isilon by EMC, $2,250 million
2009: Data Domain by EMC, $2,200 million
2006: RSA by EMC, $2,100 million
2002: IBM HDD by Hitachi, $2,050 million
2000: Cobalt Networks by Sun, $2,000 million
2004: Kroll by Marsh & McLennan Companies, $1,900 million
2006: Maxtor by Seagate, $1,900 million
2000: Ancor Communications by QLogic, $1,700 million
1998: Seagate Software by Veritas, $1,600 million
2006: FileNet by IBM, $1,600 million
2006: msystems by SanDisk, $1,500 million
2007: EqualLogic by Dell, $1,400 million
2011: Samsung HDD by Seagate, $1,375 million
2000: Quantum HDD by Maxtor, $1,300 million
2003: Legato by EMC, $1,300 million
2010: Numonyx by Micron, $1,270 million
1996: Cheyenne by CA, $1,200 million
2010: Division 5 Technology by Max Stiegemeier (GCF), $1,200 million
1999: Data General by EMC, $1,100 million
1995: Conner Peripherals by Seagate, $1,040 million
(Source: StorageNewsletter.com)

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