Menu
​Cisco, IBM and Intel open wallets as Internet of Things acquisitions grow

​Cisco, IBM and Intel open wallets as Internet of Things acquisitions grow

Will 2016 merger and acquisition activity eclipse the pace set in 2015?

Chuck Robbins - CEO, Cisco

Chuck Robbins - CEO, Cisco

During the first four months of 2016, nearly two dozen major mergers and acquisitions in the Internet of Things (IoT) and related market segments have taken place, with Cisco, IBM and Intel among the top buyers.

Including Big Data Analytics, connectivity and wireless markets, Strategy Analytics research indicates the 2016 merger and acquisition activity may eclipse the pace set in 2015, which was a record breaking year both in terms of the number and value of acquisitions.

“At the end of 2010, there were a scant one dozen acquisitions in the then fledgling IoT market,” says Laura DiDio, Director of IoT Research, Strategy Analytics.

“By the end of 2015, we estimate that there were 81 mergers and acquisitions; that is a nearly seven-fold increase in five years.”

DiDio says the most desirable acquisition targets are companies whose core competencies revolve around analytics, security, connectivity platform capabilities and services.

As such, within those product categories IoT vendors are especially eager to acquire companies in hot vertical segments including: Automotive, Consumer wearables, Healthcare, Industrial IoT (IIoT), Manufacturing, Retail, Smart Home, Transportation and Weather.

“Also notable is the increase in the worth of the companies being acquired,” adds Andrew Brown, Executive Director of the IoT Strategies Service, Strategy Analytics.

“While vendors are still acquiring companies for $US50, $US100 and $US200 million, billion dollar acquisitions, such as Cisco’s $US1.4 billion purchase of Jasper Technologies IoT services’ platform in February and even multi-billion deals – are no longer rarities.”

Brown concludes that well targeted and executed IoT merger and acquisitions will provide vendors with “immediate tactical and strategic opportunities” to gain market share, increase customer base, boost revenues and advance IoT goals and increase influence.

“A focused merger and acquisitions strategy has the added benefit of consolidating the industry and reducing the number of competitors,” he adds.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudintelciscoIBMbig dataanalyticsInternet of ThingsStrategy Analytics

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments