The sales of Big Tech companies always generate a Buzz in the Tech space. This article tells you the Top 5 Greatest Tech Deals of the 21st Century. The turning point of Tech Deals raised from the moment International Business Machines Corp (IBM) paid $34 billion in both cash and debt to acquire Red Hat, who is a major distributor of open-source technology and software market.
HagePlex Featured tells you how the acquisition stacks up against other big historic deals in the tech sector. Our article excludes the Tech Deal that involves the communication equipment company JDS Uniphase’s $41 billion acquisition of optical-component supplier SDL Inc. Also in our exclusion list includes the AOL-Time Warner merger valued at $350 billion.
The Top Five Greatest Tech Deals of the 21st Century
5. Microsoft Acquires LinkedIn (Amount = $26.2 Billion)
The Tech Deal that saw Microsoft buying LinkedIn happened closed in Dec. 2016. After the acquisition, the social networking site gained so much popularity, and Microsoft began integrating its tech products with the platform. LinkedIn, as of 2022, has over 500 million registered users.
2017 was the year LinkedIn co-founder Reid Hoffman joined the tech giant’s board. The exceptionally well-connected Reid Hoffman is also viewed as an ambassador for Microsoft in Silicon Valley. Hoffman’s great relationship with Microsoft CEO Satya Nadella favored the acquisition.
4. SoftBank Takes Over Arm ($31.4 Billion)
It is no longer news, that the 2016 Japan SoftBank Group Corp acquisition of the UK chip designer, Arm Holdings, is the fourth biggest tech deal in history. The decision for SoftBank to purchase Arm came immediately after the U.K. voted to leave the EU. SoftBank Group is known to have big plans to become a leader in the internet of things and connected devices.
Before selling off their assets, Arm struggled to live up to expectations. SoftBank gained some momentum for the acquisition. That momentum came after it offloaded around 51% of the top U.K. chip designer’s Chinese subsidiary to a China-led group of investors. It was a deal that was reportedly worth just $775.2m.
3. IBM Buys Red Hat ($34 Billion)
Red Hat is part of IBM’s plan to grow its cloud business. It follows similar but smaller moves by other tech companies like Microsoft Corp. (MSFT), and Salesforce.com Inc.(CRM) to invest in open-source companies.
This is IBM’s largest acquisition to date, valued at $34 billion. This deal was the third-largest tech deal and the largest ever in software. The deal surpass Microsoft’s $26.2 million purchase of LinkedIn and Facebook Inc. (FB) $22 Billion acquisition of messaging app WhatsApp.
2. Avago Technologies Merges With Broadcom ($37 Billion)
Avago Technologies proposed, in 2015, a merger worth $37 billion with Broadcom, one of the largest chipmakers in the world. Broadcom Inc. (AVGO) became the name of the combined company, based out of Singapore. The company became America’s third largest semiconductor maker in terms of revenue, after Qualcomm Inc.
Hock Tan, Avago’s serial deal-maker CEO, pursued the deal as one of many. Hock Tan, Avago’s serial deal-maker CEO, presented a hostile takeover offer of $103 billion to Qualcomm some years ago. It was ultimately blocked by the U.S. government. If it wasn’t blocked, it would have been the largest tech deal ever. No doubt, Tan’s aggressive strategy seems to have paid off.
1. Dell Buys EMC Data Storage ($67 billion)
EMC and Dell, an information technology company that focuses on cloud-based storage, joined forces in 2016 to create a massive IT powerhouse with combined revenues of $74 billion.
The deal attracted a lot of attention when it was announced. In fact, many analysts wondered if Dell was stretching itself too far in its quest to be a major player in the fourth industrial revolution.
The decision of Computing giant Dell in acquiring data storage behemoth EMC has created what we call the “world’s largest privately-controlled, integrated technology company”. Investors are excited to see that the acquisition has panned out well. So far, the two firms appear to have done a successful job of creating a single tech company.