VMware and Google on an Acquisition Frenzy in 2011
While the world has been distracted by HP's baffling $10.2 billion purchase of Autonomy and Microsoft's surprising $9 billion buy of Skype, EMC/VMware and Google have been snapping up dozens of software companies throughout 2011.
Tue, November 15, 2011
Network World — While the world has been distracted by HP's baffling $10.2 billion purchase of Autonomy and Microsoft's surprising $9 billion buy of Skype, EMC/VMware and Google have been snapping up dozens of software companies throughout 2011.
So far this year, Google has announced 23 acquisitions. With a few weeks left to go in the year, it may tie its record year in 2010 in which it completed a whopping 25 deals.
See all of the other tech industry M&As from 2011
While the financial details of most of Google's deals were not disclosed, its acquisition of Motorola Mobility was by far its largest deal ever, and one of the biggest deals of the year, at $12.5 billion, according to data from investment banking firm Berkery Noyes. This compares to Google's second biggest acquisition in 2007 of DoubleClick for $3.1 billion. Its third-place buy was YouTube in 2006 for $1.65 billion.
In 2011, Google was heavily focused on buying quasi-competing social search/price comparison sites like restaurant review site Zagat for $151 million, the DailyDeal coupon site for $114 million, and U.K. site BeatThatQuote.com for 37.7 million.
EMC has also been very busy, but has been strangely quiet about the details of its acquisitions. When including deals done by its subsidiary VMware, EMC announced a total of eight purchases this year, plus one transfer of assets and one deal that wasn't announced but seemed to have happened anyway, according to Mary Jo Zandy, managing director at Berkery Noyes. Interestingly, of all the purchases made in VMware's name, EMC did not disclose the financial details of any of them.
VMware's shopping spree consisted of: PacketMotion, maker of database and virtual machine activity monitoring; Digital Fuel Technologies, maker of IT business planning tools; Socialcast, a collaboration tool collaborative application; patch management vendor Shavlik Technologies; SlideRocket, maker of cloud-based business presentation software; WaveMaker Software, a graphical Java development tool; and NeoAccel, maker of SSL VPNs. Included in the list is Mozy, which was EMC's own online backup service so was actually a transfer of assets between EMC to VMware rather than an actual purchase.
In addition, parent company EMC also bought NetWitness; and in an under-the-radar move, made a significant deal with Asankya, too. "EMC has quietly snapped up some assets of Asankya, a developer of application acceleration services and solutions which can be applied to cloud storage solutions," Zandy says. The extent of the deal was never announced, although a spokesperson did eventually confirm.
