2020 IT, Telecom M&A Rebounds as HPE, VMware Announce Deals

IT and telecom M&A is making a comeback in 2020.

A recent GlobalData report found that technology, media and telecom companies participated in 40% less M&A in 2020’s first half than in 2019’s first half. But that trend may be shifting.

Boomi principal technologist Mike Kiersey told Channel Futures that market disruption is giving companies a chance to buy at a discount.

“For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable,” he said.

Networking and security feature prominently in our latest roundup. For example, HPE acquired an accomplished SD-WAN vendor, and Mimecast shored up its security with purchase. We also covered a secure access service edge (SASE) acquisition.

We compiled seven consolidation stories from the last month. Scroll through the images below to see what you missed in the world of 2020 IT and telecom M&A in July.

Missed the previous update? View our consolidation recap for May and June.

Datapipe's Robb Allen


One month, two SD-WAN acquisitions.

Silver Peak Systems at long last found its way into the hands of a buyer  HPE bought the company, which has scored highly in SD-WAN market share over the last several years. 

As a result, HPE will combine Silver Peak with its Aruba business.

Read about the SD-WAN acquisition.
Datapipe's Robb Allen


VMware announced plans to buy disaster-recovery-as-a-service (DRaaS) provider Datrium

Datrium was already partnering with VMware Cloud on AWS, but VMware officially bought the company to deepen its portfolio. Executives said customers can access more affordable disaster recovery service as a result.

Read about how the acquisition may benefit channel partners.
Datapipe's Robb Allen


The Canadian SD-WAN=as-a-service provider snagged Martello Technologies' SD-WAN subsidiary.

Adaptiv Networks bought Elfiq Networks, citing synergies between their portfolios. For Martello, the time had come to divest its SD-WAN practice and focus on digital experience monitoring.

Elfiq also operates out of Canada.

Learn more about Elfiq.
Datapipe's Robb Allen


Mimecast announced plans to buy an email and messaging security provider.

The email management provider purchased MessageControl for an undisclosed amount. MessageControl uses machine learning to defend against social engineering attacks. Together, Mimecast and MessageControl capabilities will combat phishing, in addition to preventing "misaddressed email data leaks."

Edward Gately has the scoop.
Datapipe's Robb Allen


Fortinet is expanding its SASE portfolio with its Opaq Networks purchase.

Fortinet's chief marketing officer said their combined offering would be "the most partner-friendly" in the market. For instance, MSSPs, carriers and other partners can build Opaq's plaform into their solutions. 

Opaq provides a zero-trust network access (ZTNA) cloud service.

Learn about why Fortinet made the purchase.
Datapipe's Robb Allen


The backup and disaster recovery provider's partners can sell DeviceLock data loss prevention solutions.

That's because Acronis bought DeviceLock to make it a wholly owned subsidiary. An executive called the acquisition an opportunity for partners to upsell.

“Acronis’ partners are now able to offer their customers a complete cyber protection suite as well as data loss prevention capabilities available from one vendor,” Acronis' chief cyber officer and chief operating officer said.

Approximately 5,000 organizations use DeviceLock to mitigate insider threats.

Get details of the purchase.
Datapipe's Robb Allen


The open source software company is bolstering its Kubernetes practice through acquisition.

SUSE announced plans to buy Rancher Labs for approximately $600 million. SUSE CEO Melissa Di Donato said partners were asking for stronger Kubernetes management capabilities; thus, Rancher's containerized workload management solutions offered a natural fit.

Read Todd Weiss' story.

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