Mergers and acquisitions have become a common practice in the tech world. Most acquisitions have a global tech giant absorbing a smaller brand or an upcoming start-up that has come up with something unique that the giant can use in its overall offerings. There are also mega-mergers where one giant is seeking to buy-out or acquire another one. While there has been an economic downturn in 2022, that surely has not stopped the tech world from engaging in acquisitions; rather several solution providers have negotiated billions of dollars to make these acquisitions happen.
Acquisition you must know of in the tech industry in 2022 are:
A. Microsoft acquiring Activision Blizzard
It was early 2022 when Microsoft announced its acquisition for Activision Blizzard Inc. which is known as the world’s largest video game creators. Acquiring its 8 studios with close to 9,500 employees – this was an all-cash transaction that offers and allows Microsoft to now expand its presence in the mobile gaming sector and not to forget- the much spoken about Metaverse and virtual environment.
The deal transaction was at $68.7 billion.
This acquisition comes with some of the world-renowned franchises in gaming that includes the likes of Diablo, Warcraft, Call of Duty, Candy Crush amongst others – making Microsoft third largest gaming company in the world now. The team at Microsoft believes that this acquisition will help them to invest in the future of cloud, making the gaming sector safe and more accessible to everyone. Their aim is to bring and integrate all the beloved games onto one platform, put players first and be one of the top destinations for gamers globally. We sure are excited to see this brand-new phase of the gaming industry!
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B. Elon Musk acquiring Twitter
Perhaps one of the most wide-spread coverages of the year in the tech industry has been the tech mogul – Elon Musk, acquiring the social media platform Twitter. From the deal almost falling apart to closing in as per news articles, firing thousands of employees globally to re-hiring few, changes impacting the platform working, its users and developers – everything has been on the table for this one.
Elon Musk – one of the top richest men globally, a founder of Tesla and SpaceX – went all in for an all-cash transaction worth $44 billion to acquire Twitter. His plans from day dot have been to reduce the dependence on advertising for Twitter revenues and increase the same 4x times by 2028 while focusing on per user revenue. He is also keen to introduce a new product soon that is named as X and is projected to have millions of subscribers by 2028. Another way to increase revenue is to bring in a payment business model introducing digital payment services that he shared with the shareholders in this deck pitch.
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C. Salesforce acquiring Troops.ai
Recently, Salesforce has been in news for their new agreement signed with Troop.ai to acquire the latter – with an undisclosed figure. Troops.ai is a known service provider when it comes to revenue and communication – where it uses Slack and Microsoft team bots to offer and produce CRM data from salesforce software.
It helps with designing tools that are offering real-time insights to support the sales staff/teams with information to close their deals and help the customers.
What we do know from Salesforce is that Troops.ai will be part of Slack once the deal is fully closed. Slack is another acquisition from a few years ago made by Salesforce. While the process is already underway for the deal, 2023 should throw more light on how this integration will reflect on Slack.
D. Google acquiring Mandiant
In an all-cash transaction, Google LLC has completed the acquisition of Mandiant Inc. for $5.4 billion with $23c per share.
Google Cloud CEO – Thomas Kurian, has mentioned that his acquisition will allow Google to deliver the best-in-class cybersecurity solutions. A much-needed aspect with our virtual world becoming a major source of information, entertainment, and income. This acquisition also may lead to setting standards for security practices in the industry and present an opportunity where speed and scalability increase – a must requirement for the security industry.
Mandiant Inc. is a cybersecurity company that helps customers with more end-to-end security operations.
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E. HP acquiring Poly
In the second half of 2022, HP Inc. announced its acquisition of Poly – one of the world’s largest providers of workplace collaborative solutions. This was an all-cash transaction that closed at $3.3 billion with $40 per share – also including Poly’s net debt.
HP strongly believes that the company will be making profits with their hybrid working solutions and this is where Poly comes in handy strengthening HP’s hybrid solutions. Softwares, video conferencing tools, voice, camera, headsets along with other relevant aspects are included in this. The global giant HP also believes that this will truly change the game to enhance the working model structure of the modern world – increasing and enhancing workforce productivity as well as enabling customers to gain more insights, visibility, security, and manageability.
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These acquisitions are some examples of how 2022 has unfolded in the tech world – disruptive, dynamic and intriguing for sure. M&A, mergers, and acquisitions, are only set to grow with the rate at which start-ups across the globe are booming and producing innovative products/solutions that the giants are eager to integrate into their existing systems. Stay tuned to Hetic blog for more information on digital business and tech industry.
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