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All M&As in 2023

Only 16, lowest figure since 1998, but huge one for historical record of $69 billion

Since decades, we analyze the merger and acquisition trends in the WW storage industry, which has allowed us the proper perspective from which to gauge the evolution over time.

NUMBER OF ACQUISITIONS SINCE 1977 IN WW STORAGE INDUSTRY
(Total 1,652 or 38/year)

M&as 2023(Source: StorageNewsletter.com)

 

We count 16 M&As in 2023, the lower figure since 1998 and less than in 2022 (22), in 2021 (35). In 2006, there was a record of 104, and total of 1,653  since 1977 or 38 on average per year.

Why this low figure? The consolidation in the mature storage industry is slowing. Furthermore, there are few start-ups with revolutionary technologies that could interested potential buyers. Some interesting start-ups could be acquired but they apparently are asking for price too high and prefer to remain private or waiting for an IPO. In brief, there are less and less new technologies in the WW storage industry.

And into these 16 M&As in 2023, the price of only 4 deals were revealed by the buyers, meaning that it was relatively low for the 12 other ones with an amount not impacting seriously their financial results.

Two deals surpasses $5 billion in 2022 and 2023, 3 in 2021. The highest acquisition in the history of the storage industry, at $63 billion, was the merger in 2015 of EMC and Dell. But this figure was beaten in 2023 by Broadcom, acquiring VMware for $69 million. – even if both of them are not in storage onlyt.

MORE THAN $1 BILLION M&As IN HISTORY OF STORAGE INDUSTRY
(3 in 2023)
2023: VMware by Broadcom, $69,000 million
2015: EMC by Dell, $63,000 million
2018: Red Hat by IBM, $34,000 million
2001: Compaq by HP, $25,000 million
2018: CA Technologies by Broadcom, $18,900 million
2017: Toshiba NAND business by Bain Capital (and partners), $18,000 million
2015: SanDisk by Western Digital, $16,000 million
2023: Toshiba by Japan Industrial Partners, $15,300
2005: Veritas by Symantec, $11,000 million
2011: Autonomy by HP, $10,300 million
1998: Digital Equipment by Compaq, $9,600 million
2020: Intel (assets) by SK hynix, $9,000 million
2015: Veritas (Symantec) by The Carlyle Group and GIC, $7,400 million
2009: Sun by Oracle, $7,400 million
2019: Mellanox by Nvidia, $6.900 million
2013: LSI by Avago Technologies, $6.600 million
2022: DAtto by Kaseya, $6,200 million
2017: Cavium by Marvell, $6,000 million
2016: Brocade by Broadcom, $5,900 million
2021: Mimecast by Primera, 5,800 million
2021: Quest Software by Clearlake Capital, 5,400 million
2021: Cloudera by Clayton, Dubilier & Rice and KKR, 5,300 million
2020: Veeam Software by Insight Partners, $5,000 million
2011: Hitachi GST by WD, $4,800 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
2014: Riverbed by Thoma Bravo, $3,500 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
2015: PMC-Sierra by Microsemi, $2,300 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
2000: Seagate by Suez Acquisition, $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
2003: Documentum by EMC, $1,700 million
2016: Dell EMC Enterprise Content Division by OpenText, $1,620 million
1998: Seagate Software by Veritas, $1,600 million
2017: Barracuda Networks by Thoma Bravo, $1,600 million
2006: FileNet by IBM, $1,600 million
2007: Opsware by HP, $1,600 million
2006: msystems by SanDisk, $1,500 million
2018: IM Flash Technologies (JV With Intel), $1,500 million
2019: Carbonite by Opentext, $1,420 million
2007: EqualLogic by Dell, $1,400 million
2019: Cray by HPE, $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
2015: Cleversafe by IBM, $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
2015: Virtustream by EMC, $1,200 million
1999: Data General by EMC, $1,100 million
2014: Fusion-io by SanDisk, $1,100 million
2017: Nimble Storage by HPE, $1,090 million
1995: Conner Peripherals by Seagate, $1,040 million
2016: QLogic by Cavium, $1,000 million
(Source: StorageNewsletter.com)

In conclusion, there was not at all an intense activity in 2023 in number of deals and only 2 represented big sums.

EMC was historically the most voracious in the storage industry with 82 acquisitions since 1993. It acquired a record of 23 companies in 2006 and 2007 only, just 1 in 2011, 3 in 2012 and 2013, 5 in 2014, 3 in 2015. On its side acquirer Dell got a total of 18 companies and also no one since 6 years.

With these 82 deals, EMC is largely in front of J2 Global with a total of 36 small acquisitions, Seagate (including Seagate Software) 31, Iron Mountain (in data storage only) 29, LSI with Avago and Broadcom 28, Veritas added to Symantec 28, Adaptec with acquirers PMC Sierra and then Microsemi 26,  HP with HPE 25, WD 24, NetApp 24, IBM 22, Dell 18, and Xyratex (acquired by Seagate in 2013) 16 .

The consolidation in the industry will continue in 2023, but at a slow pace and since 2014, because some publicly-traded companies are in bad financial shape and even if many storage start-ups are trying to survive with only 2 possibilities: to be acquired or die.

Furthermore a trend is not going to stop: storage giants invent about nothing in new killing storage technologies and prefer to get them by acquiring start-ups. It’s less expansive than investing in their own R&D.

We will probably continue to see a few M&As in 2024 in the most demanding storage sectors: cloud, software, security, hyperconverged system, and SSD where there are too many companies, but also in the channel for expansion.

WHO BOUGHT WHOM IN 2023

Month Buyer Acquired company Price in $million Comments
3 Akamai Technologies Ondat NA Cloud-based storage technology provider
4 BMC Model9 NA Mainframe cloud data management software
11 Broadcom VMware 69,000 Virtualization software
10 Broadcom Elastics.cloud NA CXL player
2 Cristie Software Storix NA Backup and recovery software for Linux, AIX and Solaris
6 Databricks Rubicon Technologies NA Start-up working on building storage systems for AI
10 Databricks Arcion 100 Provider for real-time enterprise data replication technology
1 DataCore Software Object Matrix NA Object storage pioneer and media archive specialist
10 DataCore Software Workflow Intelligence Nexus NA Seasoned workflow services and software firm
12 Francisco Partners Blancco Technology Group 1,253 Data erasure and mobile diagnostics
3 Japan Industrial Partners Toshiba 15,300 Acquirers include also 17 Japanese enterprises and banks, Toshiba remaining shareholder
7 ScalePad Adept Managed Continuity NA Solution adding BC to backup monitoring offering that includes Backup Radar
3 Serene Investment Management Nexsan (Storcentric) NA Storage solutions
4 Thrive Storagepipe NA Cloud, data protection, managed services and cybersecurity provider
4 Trusted Data Solutions Assured Data Technologies NA Provider of tape restoration services in India
5 Vector Capital Riverbed Technology NA Vector Capital being private equity firm

(Source: StorageNewsletter.com)

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