Latest M&A: T-Mobile, AT&T, Veeam


Dell and Broadcom have sold cybersecurity assets this year.

Security has been a big area for consolidation in early 2020, and the trend is likely to grow throughout the rest of the year, according to an AT&T executive. IoT security provider Armis and digital threat protection provider Segasec both came under new ownership in the last two months.

Private equity also is a prevalent theme in our M&A recap, as Siris officially completed its acquisition of TPx Communications. We also saw a major victory for two large wireless carriers that are trying to combine forces.

We do a recap of the latest channel-impacting M&A every other month. Scroll through the images below to see the big deals that are impacting the IT and telecommunications industries.

Missed the previous M&A gallery? View the edition covering November and December.

Women in the Channel

The managed services and connectivity provider is officially under a private equity firm's ownership.

Siris agreed last August to buy TPx Communications, but the deal took several months to wrap. Longtime CEO Dick Jalkut has retired from the company, and Jim Delis has assumed channel chief duties.

Read about the future of TPx.
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The carriers scored a huge win for their proposed merger.

A U.S. district judge threw out a lawsuit from 14 state attorneys general that claimed T-Mobile and Sprint together would enact anticompetitive practices. The judge suggested in his ruling that Dish Network, which will emerge as the fourth U.S. wireless carrier, may be in a more financially stable position than Sprint was.

See the latest installment of the T-Mobile-Sprint saga.
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Xerox doesn't seem to be taking no for an answer as it tries to purchase HP.

While HP is open to proposals as it emerges from a quiet period, its leadership argued that Xerox's offer of approximately $34 billion undervalued the company. Xerox had bumped its offer from $22 per share to $24 per share, but the current amount still presents too much risk for HP shareholders.

Read Lynn Haber's coverage of the controversy.
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Dell Technologies validated rumors that it would sell its RSA cybersecurity business.

A consortium that includes Symphony Technology Group (STG) bought RSA for more than $2 billion. According to an analyst, the deal was "the biggest play in cybersecurity to date." The same analyst speculated that the consortium may choose to flip RSA to another buyer.

Check out Edward Gately's story at Channel Futures.
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Ingram Micro

The distributor bought Ictivity, a provider of managed services, workplace automation and other IT offerings.

The deal gives Ingram more of a European presence, as Ictivity is based in the Netherlands. The acquisition also adds consultancy, professional services and managed services resources. Ictivity has certifications with Ivanti, Aruba, Fortinet and several other vendors.

Read about why Ingram Micro made the purchase.
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Accenture bought the Symantec security services business from Broadcom, not long after Broadcom bought Symantec's enterprise security business.

We don't know the financial terms of the deal, but we know that Broadcom paid $10.7 billion for the Symantec enterprise security business before divesting the services portion. Accenture hopes to scale its managed security service.

“This acquisition will distinguish Accenture Security as one of the world’s leading providers of managed security services and offer clients our combined expertise, fine-tuned to their industry with tailored global threat intelligence powered by advanced analytics, machine learning, orchestration and automation capabilities," an Accenture executive told Channel Futures.

Learn more about Broadcom's decision.
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Insight Partners

The private equity firm made two big splashes.

First it was the IoT security company Armis, which Insight bought for about $1.1 billion. It's said to be the biggest acquisition of a private Israeli cybersecurity provider.

Insight in the same week announced the purchase of cloud backup and recovery provider Veeam Software. The $5 billion deal turns Veeam into a U.S.-based company and could significantly impact how it does sales.

Read about the Veeam and Armis acquisitions.
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J2 Global

Veeam made the news again as one of its partners postulated an interesting strategy.

J2 Global has been targeting fellow Veeam channel partners for acquisition. J2 bought OffsiteDataSync (and with three other companies) last year and is still pursuing conversations.

"Our DNA is that of being a buyer," said Dan Timko, J2's chief strategy officer.

Learn more from Timko and J2.
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Open Systems

The Swiss secure access service edge (SASE) provider bought a company from the same country.

Open Systems bought AIOps provider Sqooba, which expands visibility across applications and enterprise operations. It's a good fit for Open Systems, which combines managed SD-WAN and security as a service on its platform.

We covered the transaction.
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Equinix will deliver a bare metal automation offering across its data center and interconnection platform through its new purchase.

The acquired company is Packet, whose technology automates physical servers and networks. Equinix said bare metal assists in the deployment of distributed, hybrid multicloud infrastructure. 

"By acquiring Packet we are making it easier for enterprises to seamlessly deploy multicloud solutions at Equinix and extract greater value from our rich ecosystems and global interconnection platform,” Equinix’s chief product officer said.

Get details on the purchase.
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Adaptiv Networks is adding internet acceleration through an acquisition of LiveQoS.

Adaptiv, which provides cloud-based SD-WAN as a service, will use LiveQoS assets to improve performance over TCP and UDP networks. LiveQoS' CEO said the acquisition presents an opportunity for his company to "join the SD-WAN revolution."

Edward Gately has the scoop.
Women in the Channel

Mass consolidation between security providers is inevitable, according to an industry expert.

“We as an industry can’t continue to spread the technology out so wide,” said Terry Hect, AT&T‘s vice president of technology strategy. He suggested that the industry's growing emphasis on cloud and endpoint protection could cause the ground between them to "evaporate or lose much of its traction." Hect was speaking at the Check Point CPX 360 2020 conference.

That came just a few weeks after Mimecast acquired digital threat protection provider Segasec.

See more of the comments Hect made at the conference.

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