Q1 2015 M&A was HOT with 7 deals and more than $600M in total consideration while funding started the year off strong with $363M from 9 rounds, with a continued focus on later stage start-ups. Highlights from the quarter include:
– J2 Global dominates Q1 M&A representing 4 out of the 7 announced transactions
– The largest Q1 2015 deal was Avago Technologies’ $606M all-cash acquisition of Emulex, a provider of network connectivity, monitoring, and management
– Another notable transaction is WD/HGST’s aggressive move into object storage with the acquisition of Amplidata. This transaction follows the Red Hat purchase of open source object storage provider Inktank last year. There is likely to be more M&A in this sector as leading storage providers look to build competing object storage offerings against Red Hat and WD.
– Q1 2015 Storage related funding started the year off strong with $363M from 9 rounds, with a continued focus on later stage start-ups. Q1 2015 funding was comparable to Q1 2014 with $333M from 8 rounds with an average round size of $41.6M.
– Q1 2015 funding was elevated by Simplivity’s $175M round, which was more than all its previous rounds combined and more than double its last round of $58M. Simplivity appears to be following the example of Cloudera and Pure Storage which raised substantial private rounds that equated to the proceeds that were traditionally generated from an IPO.