5 Biggest Tech Acquisitions of All Time

Published June 23rd, 2022 - 02:45 GMT
5 Biggest Acquisitions in the Tech World
(Source: Shutterstock)
Highlights
Acquisitions are frequent in the tech industry, it typically involves a large company absorbing a smaller one for billions of dollars.

To survive in the Ocean, bigger fish must eat the smaller ones. Likewise, this is the law of survival in the business and tech world. Acquisitions are frequent in the tech industry, it typically involves a large company absorbing a smaller one for billions of dollars.

However, some of these acquisitions, to say the least, are considered unusual, as mega-mergers involve one giant firm purchasing another, as a way to spur growth, reshaping the landscape of the industry.

5 Biggest Acquisitions in the Tech World

In this article, we’ll rank the biggest acquisitions in the Tech World.

  1. Microsoft acquires Activision Blizzard for $68.7 billion

Earlier this year, Microsoft stunned the IT and gaming worlds by announcing its acquisition of Activision Blizzard in a $68.7 billion deal all in cash, making it the biggest acquisition in the tech industry so far.

As per the deal's terms, Microsoft had to pay $95 per share for Activision, the developer of popular game franchises such as Call of Duty.

5 Biggest Acquisitions in the Tech World

This acquisition will enable the Xbox console maker and the owner of a few gaming studios to grow their foothold in gaming, making it the third-largest player in the video game industry right after China’s Tencent and Rival Japan’s Sony, the manufacturer of the PlayStation.

  1. Dell acquires EMC for $67 billion

Among the biggest acquisitions is Dell's acquisition of EMC.

In 2015, Dell announced the acquisition of data storage provider EMC for $67 billion or $33.15 a share. With the acquisition, Dell, the world's third-largest personal computer manufacturer, was able to grow from the PC market into the more lucrative enterprise data management services industry to compete with HP, IBM, and other well-established vendors.

5 Biggest Acquisitions in the Tech World

According to a joint statement from Dell and EMC, EMC also operated VMWare, a software and services cloud and virtualization firm that kept its independence and remained a publicly-traded company. The combined Dell EMC was named Dell Technologies. 

  1. Avago Technologies acquires Broadcom for $37 billion

In 2015, Avago Technologies Limited bought Broadcom Corporation in a cash and equity transaction valued at $37 billion in enterprise value. Broadcom was known for its chips, which were used widely in smartphones made by Apple Inc as well as Samsung.

5 Biggest Acquisitions in the Tech World

With combined annual revenues of nearly $15 billion, the merged business will have the most diversified communications platform in the semiconductor industry. The combined business, headquartered in Singapore and branded as Broadcom, became the third-largest semiconductor manufacturer in the United States by revenue, trailing Intel Corp and Qualcomm Inc. This is still by far the largest-ever chip deal. 

  1. AMD acquires Xilinx for $35 billion

In 2022, Advanced Micro Devices (AMD) bought chip maker rival Xilinx for $35 billion in shares, intensifying its struggle with Intel in the data center semiconductor industry.

The merger resulted in a combined company with 13,000 engineers and a wholly outsourced production strategy that mainly relies on Taiwan Semiconductor Manufacturing. The two American companies benefited from the growth and upside potential of the combined company which has used a more agile approach to steal market share from Intel, which has struggled with internal production. 

  1.  IBM acquires Red Hat for $34 billion

In October 2018, IBM announced a $34 billion acquisition of Red Hat which had a market cap of $20.5 billion back then.

This is by far IBM's largest transaction to date and the fifth-largest tech acquisition in history. The acquisition aimed at accelerating innovation by offering a next-generation hybrid multi-cloud platform.

5 Biggest Acquisitions in the Tech World

The acquisition reshapes the enterprise cloud industry. Red Hat's open hybrid cloud technologies are now combined with IBM's unrivaled breadth and depth of innovation and industry expertise, as well as sales leadership in over 175 countries. Before that, both firms worked for 20 years to make open source the default choice for modern IT solutions. 


© 2000 - 2022 Al Bawaba (www.albawaba.com)

You may also like