Time & Model
Kedar Special Situations • 30 Comments
Time & Model
Kedar Special Situations • 30 Comments
Dec. 31, 2015, 7:03 PM
- Cisco (NASDAQ:CSCO) could make a bid for storage array vendor NetApp (NASDAQ:NTAP) and threat-prevention hardware/software provider FireEye (NASDAQ:FEYE) in 2016, thinks FBR's Dan Ives. Cisco/NetApp speculation has been around for a while. Meanwhile, Cisco has made several security acquisitions in recent years, and appears to be up for more, but has also launched products that compete with FireEye.
- Ives also thinks IBM could bid for machine/log data analytics software leader Splunk (NASDAQ:SPLK) and business intelligence/data visualization software firm QLIK. With a $7.6B market cap and high multiples, Splunk would be a costlier acquisition than IBM's traditional fare.
- HP Enterprise (NYSE:HPE), meanwhile, is seen as a potential suitor for both Qlik and enterprise cloud storage/file-sharing leader BOX. And Oracle (NYSE:ORCL) a potential buyer of cloud ERP, HR, and e-commerce software firm NetSuite (NYSE:N). Larry Ellison owns a large stake in NetSuite (more SMB-focused than Oracle), and the company both competes and partners with Oracle.
- Microsoft (NASDAQ:MSFT), which has made plenty of acquisitions in the Satya Nadella era, is seen as a potential buyer of database security software and Web app firewall vendor Imperva (NYSE:IMPV), as well as of cloud vulnerability management and compliance software firm Qualys (NASDAQ:QLYS). Symantec (NASDAQ:SYMC), which has signaled it will make security acquisitions after the sale of its Veritas unit closes, is considered a possible acquirer of e-mail/compliance security software provider Proofpoint (NASDAQ:PFPT).
- Yesterday: FBR sees improving cybersecurity spend, likes several stocks
May 5, 2015, 3:08 PM
- Bloomberg reports Microsoft (MSFT -1.2%) is "evaluating a bid" for Salesforce (CRM +4.8%) after Salesforce was approached by another potential suitor. Salesforce is reportedly working with two banks to determine a response.
- Bloomberg cautions Microsoft isn't currently in talks with the cloud CRM software giant, whose market cap stands at $49B. There was plenty of speculation Microsoft was the company that (per Bloomberg) recently approached Salesforce. SAP has denied being interested, and Oracle has suggested it isn't. A source says Microsoft has "long expected it might compete for Salesforce if it was for sale."
- Salesforce has jumped on the report. If Microsoft pursues a bid, activist ValueAct Capital (has a board seat) might raise objections.
- The report comes as Microsoft announces a partnership with cloud ERP/HR/e-commerce software vendor NetSuite (N +3%) to integrate NetSuite's apps with Office 365 apps and Azure services, and to make Azure NetSuite's "preferred cloud infrastructure platform." Microsoft struck an Office 365-focused partnership with Salesforce last year. NetSuite has received a lift from Bloomberg's report.
Apr. 29, 2015, 3:02 PM
- After following markets lower most of today, enterprise cloud software vendors have jumped thanks to a Bloomberg report stating cloud CRM software giant Salesforce ($51B market cap) has been approached by a potential buyer, and is working with bankers to field offers.
- Gainers include Workday (WDAY +6%), ServiceNow (NOW +4.3%), NetSuite (N +4.3%), Marketo (MKTO +2.7%), Zendesk (ZEN +1.2%), Cornerstone OnDemand (CSOD +1.6%), Castlight (CSLT +2.4%), and Jive Software (JIVE +1.5%).
- Though the cloud software market has seen plenty of M&A activity, a Salesforce deal would easily be its largest. Workday ($17.5B market cap) is the second-largest enterprise cloud pure-play. ServiceNow ($11.6B) is #3.
Apr. 23, 2015, 9:28 AM
- Bronto Software provides a cloud marketing automation software platform used by over 1,400 brands, including Armani and Timex. NetSuite (NYSE:N) is buying the company for $200M in cash and stock.
- NetSuite "declares Bronto to be the number one email marketing provider to retailers ranked on the Internet Retailer Top 1000," and argues its offerings complement NetSuite's SuiteCommerce e-commerce infrastructure software platform (used by over 3K brands).
- CEO Zach Nelson: "This combination, for the first time ever, ties a rich marketing automation system with a cloud-based omnichannel commerce platform ... Just as customers demand seamless cross-channel shopping experiences, they increasingly expect companies to communicate consistently through all of their digital experiences on site, at stores, in email or through social or mobile."
- The marketing automation space has already seen plenty of M&A - past deals include Salesforce's purchase of ExactTarget and Oracle's purchases of Responsys and Eloqua. Remaining independent players include publicly-traded Constant Contact, HubSpot, and Marketo.
- Last year, NetSuite bought Venda, provider of a cloud-based platform for handling online, mobile, and social e-commerce interactions.
Sep. 19, 2014, 11:23 AM
- SAP (SAP -3.9%) investors have a case of sticker shock after the company agreed to pay $8.3B (to be financed through a credit facility) to buy cloud travel/expense management software leader Concur Technologies. The acquisition price is equal to 9.6x Concur's estimated FY15 (ends Sep. '15) sales.
- On the other hand, enterprise cloud software names are rallying on hopes of fresh deal activity. CRM +1.5%. N +2.7%. NOW +2.6%. PAYC +5%. ULTI +2.2%. JIVE +1.8%. DWRE +1.8%. MKTO +1.7%.
- SAP CEO Bill McDermott proclaims combining Concur's products with Ariba's cloud procurement/B2B marketplace offerings and Fieldglass' cloud labor-management software will help his company redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment."
- McDermott also praises Concur's corporate travel ecosystem, which includes Hertz, Delta, Expedia, Sabre, and many others, and sees an opportunity to create real-time travel collaboration tools running on SAP's Hana in-memory database. SAP notes only 30% of Concur customers are currently SAP clients, yielding plenty of cross-selling opportunities.
Jul. 17, 2014, 11:28 AM
- U.K.-based Venda offers a cloud-based platform for handling online, mobile, and social e-commerce interactions, as well as managing in-store marketing and order fulfillment/logistics. Its customers include British retailers such as Tesco F&F Clothing, Boohoo.com, and Laura Ashley.
- NetSuite (N -1.3%), which already offers a multi-channel e-commerce software platform (SuiteCommerce, has seen strong growth over the last 2 years), says the purchase will improve SuiteCommerce's feature set and help the company expand in Europe. Deal terms are undisclosed for now.
- CEO Zach Nelson: "By combining Venda's deep customer insight and years of experience delivering a real-time, scalable commerce platform with NetSuite's cloud leadership, we can bring new capabilities to B2B and B2C companies of all sizes and transform how they run their businesses."
- The purchase heightens NetSuite's competitive challenge to Demandware (DWRE -1.5%), which receives a large chunk of its sales from European online merchants. SAP (via its hybris unit), IBM, and Oracle are also looking to provide multi-channel commerce platforms, and thus take advantage of the growing IT spending power of CMOs.
- More details will be given following NetSuite's July 24 Q2 report.
Dec. 20, 2013, 6:21 PM
- Responsys (MKTG +40.4%) closed today at $27.40, $0.40 above Oracle's (ORCL -0.6%) $27/share acquisition price. Meanwhile, fellow cloud marketing automation software firms Marketo (MKTO +11.3%) and Constant Contact (CTCT +6.8%) closed up sharply.
- Sources tell the WSJ SAP (SAP +0.8%) was "among the final bidders" for Responsys before Responsys decided to sell to Oracle. An analyst talking to the paper thinks Responsys' trading price suggests investors are betting on an SAP counteroffer arriving.
- FBR, on the other hand, thinks Oracle's deal could lead either SAP or NetSuite (N +2.2%) to acquire Marketo. Both SAP (courtesy of the hybris acquisition) and NetSuite (via its SuiteCommerce platform) are major players in e-commerce infrastructure software, but neither have leading positions in online marketing automation.
- Forrester argues Oracle's move will improve the company's "capable but otherwise moribund" marketing software lineup. Goldman notes Oracle is paying 8x Responsys' recurring annual revenue - a steep multiple, but less than the 11x it paid for Eloqua.
Oct. 24, 2013, 12:09 AM
- Ahead of tomorrow's Q3 report, NetSuite (N) has struck a deal to acquire TribeHR, a developer of cloud HR apps aimed at SMBs. NetSuite plans to fuse the startup's offerings with its SMB-focused cloud ERP apps.
- "Really there has been no HR offering in the mid-market," states NetSuite CEO Zach Nelson (a little hyperbolically). He sees an intergrated ERP/HR solution allowing SMBs to do away with manual HR processes, and also talks up the value of TribeHR's social/collaboration tools.
- The purchase means NetSuite will compete more with Workday (WDAY), which leads the cloud HR market and also offers cloud ERP software. But Workday has a stronger focus on large enterprises. Ultimate Software (ULTI), Cornerstone OnDemand (CSOD), and Paylocity (reportedly eying an IPO) also compete in cloud HR.
- Separately, NetSuite and others see an opportunity for the company to poach clients from SAP's SMB-focused Business ByDesign cloud apps, which the German software giant has decided to pare its investments in. NetSuite has launched a Business ByDesign migration program.
- SAP has reportedly invested €3B in Business ByDesign development over 7 years, but the platform has never generated more than €23M/year in sales in 3 years of availability. Business ByDesign resources will be shifted towards SAP's Hana Cloud, which runs cloud apps on top of the popular Hana in-memory database.
Jun. 5, 2013, 10:05 AMSAP expands its cloud software arsenal by acquiring hybris, a top provider of e-commerce infrastructure software, for an undisclosed sum. The deal comes 8 months after SAP bought top B2B marketplace provider Ariba. SAP argues hybris' software, which covers Web, mobile, and in-store channels, will improve "customer insight and engagement" when paired with its Hana in-memory database and Jam social networking software. The deal could spell tougher competition for hybris rivals Demandware (DWRE -0.5%) and NetSuite (N -0.4%). SAP could also end up competing with IBM, which has been making acquisitions to bolster its Smarter Commerce initiative. | Jun. 5, 2013, 10:05 AM | 1 Comment
May 8, 2013, 11:52 AM
NetSuite (N +0.1%) has bought OrderMotion, a developer of cloud-based order management software for e-commerce sites. OrderMotion's products will complement NetSuite's existing order management offerings, which cover a number of different sales channels. Interestingly, OrderMotion's products work with front-end tools from Demandware (DWRE -0.4%), a major e-commerce software rival of NetSuite's. In January, NetSuite bought retail point-of-sale software firm Retail Anywhere.| May 8, 2013, 11:52 AM
Jan. 10, 2013, 2:39 PM
NetSuite (N -1.1%) has acquired Retail Anywhere, a developer of point-of-sale (POS) software for retailers, for an undisclosed sum. NetSuite argues a combo of Retail Anywhere's offerings, which include mobile, analytics, and inventory management software, and NetSuite's SuiteCommerce e-commerce platform allow it to deliver an end-to-end retail solution. The purchase puts NetSuite in competition with NCR, which recently announced it's buying POS software firm Retalix. (more)| Jan. 10, 2013, 2:39 PM
Feb. 9, 2012, 1:31 PM
After surging in the wake of Oracle/Taleo, some cloud software names have sold off: CSOD +1.2%. CTCT -1%. N -0.2%. Others are faring better: SABA +5.7%. CRM +3%. KNXA +2.4%. Bernstein thinks Oracle's modest premium, perhaps due to a limited number of potential buyers, "puts a cap" on future deal valuations. However, as Nomura notes, the run-up already seen in Taleo due to M&A hopes helps explain the small premium.| Feb. 9, 2012, 1:31 PM
Dec. 5, 2011, 8:29 AM
Salesforce.com (CRM) is up 2.8%, joining Taleo (TLEO) and NetSuite (N) in rising premarket in the wake of SAP/SFSF, even though its size (current market cap of $16.3B) makes it tougher for a would-be acquirer to swallow. Also higher: ULTI +1.6%. LPSN +3%. Other names haven't yet seen premarket activity, but could move once markets open.| Dec. 5, 2011, 8:29 AM | 1 Comment
Dec. 3, 2011, 1:24 PM
More on SAP/SuccessFactors: IDC predicted earlier this week the cloud business software space could see a wave of M&A activity, and SAP's big purchase will likely stoke investor hopes for additional deals occurring. Some other cloud software names that could be on the move on Monday: KNXA, TLEO, CSOD, TNGO, N, LPSN, CTCT, SREV.| Dec. 3, 2011, 1:24 PM
Dec. 2, 2011, 3:35 PM
IDC joins the ranks of those who see Netflix (NFLX) as takeover bait (I, II), speculating Microsoft could bid for the company next year. The firm also thinks: cloud business software firms such as Workday, Taleo (TLEO), and NetSuite (N) may get bought out; SAP will acquire Jive Software; 15% of new mobile apps will be HTML5-based by year's end; and overall IT spending will grow by a healthy 6.9% next year.| Dec. 2, 2011, 3:35 PM
Oct. 24, 2011, 9:45 AMWhile Salesforce.com (CRM -0.3%) is off slightly following Oracle's (ORCL +0.5%) deal to acquire RightNow (RNOW +19.2%), several other cloud software names are gaining on hopes they might also be acquired - perhaps by Salesforce or SAP. N +4.3%. TLEO +6.5%. LPSN +2.8%. SFSF +4%. DMAN +1.9%. | Oct. 24, 2011, 9:45 AM