Biggest tech mergers in 2016 made headlines that shook the internet by storm. These mergers and acquisitions have accounted for about $642 billion and continue to do so with more deals, according to Dealogic. By striking up these deals, companies are able to continue to grow and tap new markets. This expands their sphere of influence and help them take advantage of niche markets they may not have otherwise control.
We will look at 3 different mergers from Microsoft-LinkedIn, EMC-Dell, ZAGG-Mophie, and FitBit-Pebble.
The Unexpected One
In June, Microsoft announced that it would buy the professional networking giant, LinkedIn. While both leaders in business, no one really saw the two coming together. Microsoft believes that the deal will accelerate the growth of LinkedIn and Microsoft 365. The $26.2 billion cash deal is something many people are watching.
Securing the Cloud
The $60 billion dollar deal between Dell and EMC, now called Dell Technologies, is looking to become the one stop shop for IT services sold to businesses. After almost a whole year of brokering the deal, it was finalized last October. The deal hopes to gain momentum as both companies have seen a decline in their technologies as more and more focus is shifted to the mobile realm. Ideally, Dell will be able to sell more of their products to EMC’s clients.
This makes one of the biggest tech mergers of 2016.
Powering Mobile Products
Smartphone accessories leader, ZAGG reaches into the mobile power market with its $100 million deal with mophie. The Utah-based company named 5 keys benefits to the merger and cites that the deal will improve the brands’ strength and make it the preferred brand in the global platform. Known for its screen protectors and keyboards, the company has always struggled to get into the power market dominated by mophie. With this merger, the power stays.
Smart Health Revolution
The wearables game is on point as Fitbit announces that it is buying certain Pebble assets. Pebble made its name when it got on Kickstarter and introduced the world to the first smartwatch. Since then, Pebble has gained a strong following and continued to create wearable technology that people love. Fitbit on the other hand is synonymous with health and fitness. The latest update to the Fitbit Blaze has turned the activity tracker into a functioning smartwatch. The smaller of the deals, coming in at less that $40 million, the companies aim to build on its strengths and extand its leadership position in the wearable industry.
Biggest Tech Mergers Takeaway
They happen when one business needs another. They complement the brand, or come together out of necessity. Even the biggest brands need help in staying afloat. Tractus Online definitely sees the need to partner with great entities to provide better solutions. Just like these mergers, we can create a great partnership. Let us know how we can help!
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