News Stay informed about the latest enterprise technology news and product updates.

Tech acquisitions: June kicks off with M&A frenzy

SolarWinds, ServiceNow, Salesforce, Vista Capital Partners and eFolder bolstered their offerings in an M&A rush; other IT channel news from the week.

This week saw a wave of channel-related tech acquisitions, in markets ranging from managed services software to threat intelligence and disaster recovery.

Notable among the tech acquisitions was IT management software vendor SolarWinds's buyout of LOGICnow, a provider of cloud-based IT service management technology focused on managed service providers (MSPs).

On the back of the purchase, SolarWinds plans to combine its products with LOGICnow's technologies and develop a new brand, SolarWinds MSP. The integrated portfolio will target MSPs and span data-driven automation, security, and network and service management.

"SolarWinds is committed to the growing MSP market and has realized great success through the acquisition of N-able, making the acquisition of LOGICnow a natural next step for us," said Kevin Thompson, president and CEO at SolarWinds, in a press release. The company purchased remote monitoring and management software provider N-able in 2013.

Fred Voccola, CEO at IT management software vendor Kaseya, criticized the LOGICnow purchase in a written statement: "Their customers should be concerned about this M&A [mergers and acquisitions] event not only because of the massive debt that SolarWinds is taking on in order to fund it -- which in itself will require massive cuts in R&D and support to service it -- but the uncertainty around which product will survive when they merge the two product lines."

SolarWinds said the new SolarWinds MSP portfolio will serve upwards of 20,000 MSPs globally.

Meanwhile, enterprise cloud company ServiceNow pushed deeper into the security market with the acquisition of BrightPoint Security, a threat intelligence software and analytics services company.

ServiceNow said it will use BrightPoint to enhance its Security Operations offering launched in February 2016. "The way we see BrightPoint is they have some great technologies and people ... to help us accelerate our roadmap around working in both the threat intelligence space and working with third-party security products," said Piero DePaoli, senior director of product marketing, security, at ServiceNow.

He added the buyout will benefit ServiceNow partners. "I think ... this is a pretty clear sign that [our Security Operations] offering is doing well as [we're] investing even more into it by acquiring BrightPoint to accelerate our work in this space. ... This is only going to make the work that partners do even more valuable and more needed," he said. Partner work includes ServiceNow implementation and customization.

The BrightPoint buyout wasn't the only security related M&A. Following its $1.79 billion deal to acquire Marketo, private equity firm Vista Equity Partners picked up identity and access management vendor Ping Identity. The transaction is expected to close in the third quarter of 2016.

Also among this week's tech acquisitions, Salesforce said it will acquire Demandware, an e-commerce platform provider, in a $2.8 billion transaction expected to close by the end of July 2016. The purchase, according to Salesforce, will let the company extend its customer relationship management business into digital commerce, as it creates what it is calling the Salesforce Commerce Cloud.

"Demandware brings Salesforce that much closer to owning the full customer lifecycle, seamlessly leading to purchase -- a huge value-add for organizations trying to reach their business objectives," said Eric Berridge, CEO at Bluewolf, an IBM company. Bluewolf, a cloud consultancy and Salesforce partner, was purchased by IBM in May 2016.

And in the backup continuity and disaster recovery (BCDR) space, cloud backup company eFolder completed its acquisition of BCDR software vendor Replibit. EFolder said it will further develop Replibit's software as a "flagship eFolder offering" to "deliver a truly exceptional BDR [backup disaster recovery] experience for MSPs," according to a blog post. The Replibit team, including founder Andy Besinger, has joined eFolder.

IT channel news roundup for the week of May 30

Here's a look at news highlights from the week:

  • Nonprofit trade associate CompTIA released the second set of best practice standards in the CompTIA Channel Standards program, this time focusing on MSPs. The Channel Standard for Managed IT Solution Providers covers topics such as business generation, delivery and operations, customer relations, business management, and business direction.
  • Distributor Tech Data inked a deal with Actsoft, a developer of GPS-based mobile apps, to offer Actsoft's machine-to-machine and mobile resource management products to its U.S.-based reseller partners. According to Tech Data, the addition of Actsoft's technology allows resellers to pursue opportunities in transportation, construction, education and field services verticals.
  • Cloud distributor Pax8 signed an agreement with CloudJumper, a workspace as a service platform provider, to provide its NWorkspace product. NWorkspace features desktop virtualization, hosted applications, Microsoft Office 365 support, and seven daily backup configurations. CloudJumper spun out of cloud service company nGenx earlier this month.

The Market Share is a weekly news roundup published on SearchITChannel every Friday.

Next Steps

Learn about opportunities in the K-12 education market.

Find out how cloud-based security is impacting the channel.

Startup tech companies look for channel partnerships.

Dig Deeper on Technology Vendors-OEMs

PRO+

Content

Find more PRO+ content and other member only offers, here.

Join the conversation

5 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

Which tech acquisition will impact your business the most, for better or for worse?
Cancel
Mergers are always a tricky subject. If you are constantly out-sourcing something and you have the opportunity to acquire it, then it may make sense. You still have to keep an eye on the bottom line and look at the long range effects. On the other hand there are the mergers that just seem to be eliminating the competition. These are what really bother me. Take a look at the cable companies. You have a few out there. In your local area you may have only one choice for your city. The next city over is another company, smaller, with better rates and service. The larger buys up the smaller and now charge those customers the higher rates. The customers only options would be pay the higher rates,  stream their content from a bunch of sites on-line or go to a satellite service.
Cancel
Thanks for pointing this out, @ToddN2000. Do you think there are enough customer options in the IT sectors that you're active in?
Cancel
There are a lot of options for us, we take a look at what they have to offer and then see if we can do better ourselves. In the case of a project deadline we may look to an outside solution. One that fits our needs now and down the road. We try to keep up on whats is going on to make sure our decision will still be working down the road even if there is a merger or acquisition of the vendor.
Cancel
.@ToddN2000, thanks for this insight into the decision-making process!
Cancel

-ADS BY GOOGLE

MicroscopeUK

SearchCloudProvider

SearchSecurity

SearchStorage

SearchNetworking

SearchCloudComputing

SearchDataManagement

SearchBusinessAnalytics

Close