All M&As (70) in 2012

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

(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)

* 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

(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)