1H 2019 M&A Highlights:
- 1H 2019 had 12 deals totaling $734.0M compared to 19 deals with $853.3M in total consideration in 1H 2018. We expect to see more “tuck-in” deals in the 2nd half of 2019 plus some larger exits from well-funded start-ups reaching that 7-8 year mark.
- Notable transactions in the 1st half of the year include NetApp’s purchase of Cognigo, showing that they continue to be one of the more aggressive buyers as they broaden out far from their NAS roots. Pure makes its’s second “tuck-in” deal with Compuverde while AWS moves on CloudEndure, bringing a needed DRaaS on-ramp to their cloud platform. After 14 years, Nexenta finds a home with DDS while Veritas pays up $10M for Aptare in an effort to broaden their analytics platform. The largest trade in the first half was our only public/public deal with Qlik Tech acquiring Attunity for $560M at a modest Price/Revenue multiple of 6.44x. Attunity’s data integration and management solutions will expand Qlik’s enterprise data analytics platform. Druva, which offers SaaS-based data protection, backup and management solutions, made its first acquisition with Cloudlanes and also hauled in $130M in funding.
- More and more we are seeing late stage start-ups buying up smaller players in an effort to rapidly expand their product suite and develop teams. We see this trend continuing well into 2020.
- Going into the second half of 2019 and into 2020, we also expect MSFT/Azure, Google, AWS and other leading incumbent cloud infrastructure providers to “bulk up” on their enterprise class data management offerings through M&A. With large enterprises leery of cloud “lock-in”, we see data mobility being critical along with overall data management across clouds and on-prem. Kubernetes/cloud native and related data management challenges will also be a target area for M&A and further venture investment.
1H 2019 Venture Funding Highlights:
- 1H 2019 Funding increased 30% to $804.1M from 1H 2018 of $618.6M. Rubrik led the strong first half showing with a $261M 5th round of funding followed by Druva with a $130M 7th round of funding. VAST Data raised the third largest round with a healthy $80M 2nd round. There were also five 1st rounds of funding across a spectrum of data management solutions showing that there is plenty of innovation and opportunities to disrupt the data management market.
- In the memory space, investors double down on MRAM memory provider Avalanche with a $33M 7th round and MemVerge (distributed memory platform) hauled in a $24.5M 1st round of funding. Lightsbits, providing NVMe-oF solutions, had the largest 1st round of funding, bringing in an impressive $50M from VCs and strategics including, Cisco, Dell and Micron.
For the entire report, please contact John Rotchford at firstname.lastname@example.org.