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.

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