Biggest tech acquisitions of 2022
The economic downturn of 2022 hasn’t stopped the tech industry from engaging in merger and acquisition activity. Though deals have decreased by 40 percent in the first half of 2022, several firms and solution providers have negotiated pacts of up to billions of dollars.
Most of the acquisition activity is because of the overall decline in the stock market. When prices plunge and company valuations reduce, firms step in to bargain.
So far, 2022 doesn’t show any signs of slowing down on large deals across the industry. In fact, some of the trendiest areas -- such as cybersecurity and collaboration software -- are proving this case.
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Below are the biggest technology acquisitions that have occurred so far.
1. Microsoft Acquired Activision Blizzard
In January 2022, Microsoft announced it would acquire Activision Blizzard Inc., one of the world’s largest video game creators. The deal closed for $95 per share, valuing the transaction at $68.7 billion and creating a new phase for the gaming industry.
The acquisition comes with a series of world-renowned franchises, including "Diablo," "Warcraft," "Call of Duty," "Overwatch" and "Candy Crush." Overall, this transaction turned Microsoft into the world’s third-largest gaming company, following Tencent and Sony.
Microsoft says the point behind this acquisition is to invest in the future of the cloud -- and make gaming safe and accessible to everyone. By integrating all its beloved games onto one platform, its subscription service will put players first and be the top destination for gamers worldwide.
2. Salesforce Acquired Troops.ai
Salesforce signed an agreement late this year to acquire Troops.ai at an undisclosed figure. Troops.ai is a provider of revenue and communications, using Slack and Microsoft Team bots to produce CRM data from Salesforce software.
Salesforce stated that Troops would be a part of Slack once the deal closes. Transactions normally take six to 10 months, so this should occur sometime in 2023. Troops is a leader in designing tools that offer real-time insights, supporting sales teams with information to close deals and help customers.
3. Google Bought Mandiant
Google LLC completed an all-cash transaction with Mandiant Inc. valued at $5.4 billion and $23 per share. Mandiant is a cybersecurity company, and this merger will provide customers with more end-to-end security operations.
Thomas Kurian, CEO of Google Cloud, stated that this acquisition would allow the company to deliver the best-in-class cybersecurity solutions. The merger of Mandiant and Google Cloud will present an opportunity for speed and scalability that the security industry requires.
4. Prologis Merged With Duke Realty
Prologis and Duke Realty, two of the world’s largest logistics real estate enterprises, merged in 2022. The transaction totaled $23 billion, including debt Prologis paid for with its equity. Prologis became the world’s largest logistics real estate firm on the day of the acquisition.
Executives have not yet decided on a name for the new company. However, it will hold an impressive portfolio of property, including:
- 142 million square feet of property across 19 U.S. regions
- 7 million square feet of buildings in the progress of development, alongside 17 million square feet of land
- More than 500 new customers
With this acquisition, Prologis will expand in the U.S. and transform to better meet customers’ needs.
5. HP Acquires Poly
In August, HP Inc. announced the acquisition of Poly, the world’s leading provider of workplace collaboration solutions. The all-cash transaction closed at $40 per share, $3.3 billion in total, including Poly’s net debt.
HP believes it will profit by creating new hybrid working solutions. Poly provides various solutions in this area, strengthening HP’s position even further. They include software, videoconferencing tools, voice, cameras and headsets.
HP says it will enhance workforce productivity and enable customers to gain more insights, visibility, security and manageability with these devices at play.
A Steady Flow of M&A in the Tech Sector
Though the economy’s inflation has returned to a historic level, the merger and acquisition activity has tallied thousands of deals this year. Most of these transactions are in pending stages. However, M&A activity is stacking and may continue to acquire even more growth in the final quarter.
Devin Partida writes about AI, apps and technology at ReHack.com, where she is Editor-in-Chief.