Big M&A: ScanSource-Intelisys, Sandler-X4, Verizon-XO Latest, Level 3 RumorsBig M&A: ScanSource-Intelisys, Sandler-X4, Verizon-XO Latest, Level 3 Rumors
The summer saw one of the biggest M&A announcements in the history of the channel: ScanSource-Intelisys. Sandler Partners, Verizon, Polycom and Rackspace were all making headlines too.
Big M&A: ScanSource-Intelisys, Sandler-X4, Verizon-XO Latest, Level 3 Rumors
The summer saw one of the biggest M&A announcements in the history of the channel: ScanSource-Intelisys. That overshadowed Sandler Partners’ purchase of X4 Solutions, a mega master/distributor merger in its own right.
But that wasn’t all.
We offered you the latest on Verizon’s pending acquisition of XO and Polycom’s last-minute suitor switch, just to name a couple more.
Still not satisfied?
How about Rackspace’s $8 billion sale and the split of Integra and Electric Lightwave?
July and August were two of the biggest months ever for mergers, acquisitions and spinoffs. Our one-stop gallery offers a wrap-up.
Looking for more M&A? Our breakdown from May and June is here.
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Big M&A: ScanSource-Intelisys
The linking of the traditional tech distributor with the traditional master agent most certainly is a sign of the times in the converging channel. ScanSource CEO Mike Baur made no bones about his company’s acquisition strategy, which is to purchase what the company is missing, in this case, the opportunity to sell cloud and carrier services.
Read the reactions of some members of the channel community.
Big M&A: Sandler Partners-X4 Solutions
Sandler Partners said the acquisition positions it as the nation’s second-largest telecom and cloud services master agency. Together, the companies serve more than 4,000 sales partners in the West, Northwest, Southwest and Midwest. The combined company will generate about $65 million in revenue this year. Terms of the deal are not being disclosed.
Read more about the merger.
Big M&A: Level 3 Speculation
There was buzz about a possible acquisition of Level 3 Communications by Comcast. Shares of Level 3 jumped after a report that Level 3 was “reviewing strategic alternatives,” from an outright sale to a large buyback.
For the most part, analysts pooh-poohed the rumors, believing that Level 3 is more likely to be a buyer of smaller assets.
A Level 3 spokesperson told Channel Partners her company “does not comment on rumors or speculation.”
Read more about the speculation here.
Big M&A: Apollo Global-Rackspace
News of the $4.3 billion acquisition of Rackspace Hosting by Apollo Global Management confirmed buyout rumors that have waxed and waned over the past few years.
In accepting the buyout bid, the publicly traded, 18-year-old managed cloud company will become privately held, a move industry watchers applauded. The question for Rackspace partners, i.e. digital agencies, master agents, systems integrators, VARs, solution providers and MSPs who collocate with Rackspace, is how the sale of the company impacts their business.
Check out Lynn Haber’s recap of the transaction and channel reaction.
Big M&A: Siris Capital-Polycom
In another purchase buy a private equity firm, Siris Capital Group thwarted Mitel’s acquisition of Polycom.
Siris said it plans to buy the company for about $2 billion in cash. Polycom’s board of directors, changing course, unanimously determined the Siris offer to be “superior” to the Mitel transaction. Polycom has to pay Mitel a $60 million termination fee.
Read more about why Polycom changed directions.
Big M&A: SonicWALL Spins Off From Dell
With its pending separation from Dell, SonicWALL announced its new Secure First Partner Program and previewed its Cloud Global Management System (GMS) at Peak16 in Las Vegas.
In June, Dell announced it was selling its software division, including Quest Software and its SonicWALL security business, to private-equity firm Francisco Partners and the private-equity arm of activist hedge fund Elliott Management for more than $2 billion. The deal should close at the end of the third quarter.
Big M&A: Integra, Electric Lightwave Split
Electric Lightwave is the largest regional fiber-based provider in the western United States, serving more than 5,400 large enterprise customers, wholesale carriers, web content providers, government organizations and educational institutions.
Read about the opportunities that Scott Forbush, Electric Lightwave’s vice president of indirect sales, told Channel Partners that the split creates for both Electric Lightwave and Integra partners.
Big M&A: Verizon-XO Latest
The FCC stated that “neither applicant has completed their production of responsive material. Further, with respect to certain information requests, no anticipated production date has been offered.”
Then, on Sept. 1, the FCC resumed its review.
Read more about the back-and-forth between the FCC and the two companies.
Big M&A: Simplified Networks-CloudConnect
Simplified Networks finished acquiring CloudConnect, a hosted VoIP provider based in San Diego.
Simplified said the acquisition allows it to improve its position in cloud communications. CloudConnect used Softswitch technology from Simplified Networks’ parent company, PhoenixSoft, to build its customer base. Simplified said their shared technologies will help make the transition seamless.
Read more about the acquisition.
Big M&A: Lightower Speculation
Rumors swirled that Lightower Fiber Networks is seeking a buyer, with Level 3 Communications and Zayo as potential suitors.
Lightower itself has been busy acquiring smaller companies over the past few years, most recently announcing the purchase of Datacenter101 to help meet demand for data center and networking services in the Columbus, Ohio, area.
Big M&A: BCM One-CloudStrategies
BCM One acquired certain assets of CloudStrategies Group, a Microsoft Gold Partner and cloud computing professional-services company.
BCM One bought all of CloudStrategies’ certifications for Microsoft, which includes all employees and clients. The team brings several years of experience managing customer deployments across the entire Microsoft suite of cloud services including Office 365, Skype for Business and Azure, the company said. Financial details of the transaction were not disclosed.
Read more about BCM One’s purchase.
Big M&A: Oracle-NetSuite
Oracle, the vendor long known for its on-premises portfolio of products, took another step in reinventing itself as a cloud company with the $9.3 billion bid for cloud-first vendor NetSuite, a company that lists Larry Ellison, Oracle chairman, and his family, as its biggest investors.
The deal is subject to regulatory approval, expected to close before the end of the year. NetSuite provides a suite of cloud-based financials, ERP software and omnichannel commerce software to more than 30,000 companies in more than 100 countries.
Read more about Oracle’s plans.
Big M&A: Oak Hill-Oxford Networks
Oxford Networks signed an agreement to be acquired by Oak Hill Capital Partners. Oak Hill will buy Oxford from Novacap and Bank Street Capital Partners.
Oak Hill said it plans to combine Oxford with FirstLight Fiber at the closing of the transaction.
Read the formal announcement on our website.
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