Dell’s $67B acquisition of EMC this week marked the largest-ever M&A deal in the tech industry. But EMC, its subsidiary VMWare, and Dell have also been busy acquiring and investing in tech companies across the ecosystem.
Here’s a brief overview of their investment and M&A trends, which are unlikely to remain the same as they combine into one entity.
Since 2010, Dell, VMWare, and EMC acquired just under 70 companies in aggregate. 2012 marked an M&A deal high for Dell, when it acquired Wyse, Sonicwall, and Quest Software among others. The same year was a high-water mark for EMC, which counted XtremIO, Syncplicity, and Silver Tail Systems among its 2012 acquisitions. VMWare M&A activity by frequency has been on the decline since 2010, as the chart below highlights.
Peeling back investments, EMC has increased its deal pace since 2010. EMC’s most recent investment was in internet security firm Zscaler‘s $100M round at a $1 billion valuation.
Dell, which invests through strategic arm Dell Ventures, saw a five-year high in number of investments in 2014, which included investments across security (Lastline, Cylance, Invincea) and storage (Skyera, Formation Data Systems, Nexenta).
How will Dell’s acquisition of EMC affect the M&A ecosystem for venture-backed companies? It’s still not fully clear whether Dell’s acquisition will result in fewer acquisitions by its newly acquired entities (or by Dell itself after such a large deal for EMC). But VMware and EMC were on their own responsible for seven acquisitions ≥$100M since 2010, including the billion-dollar acquisitions of AirWatch, Nicira Networks, and Virtustream.
|EMC & VMWare’s Largest VC-backed Acquisitions Since 2010|
|Company||Description||Valuation ($M)||Acquirer||Select Investors|
|AirWatch||Mobile device management||1540||VMWare||Accel Partners, Insight Venture Partners|
|Nicira Networks||Software-defined networking||1260||VMWare||Andreessen Horowitz, Lightspeed Venture Partners, NEA|
|Virtustream||Virtualization technology||1200||EMC||Noro-Moseley Partners, Sapphire Ventures, Intel Capital, TDF Ventures, Columbia Capital, Blue Lagoon Capital|
|XtremIO||Enterprise flash storage||430||EMC||Lightspeed Venture Partners, Jerusalem Venture Partners, Giza Venture Capital, Battery Ventures|
|ScaleIO||Software-defined storage||250||EMC||Norwest Venture Partners, 83North|
|Aveksa||Identity access management||225||EMC||CRV, FirstMark Capital, FTV Capital|
|Integrien||Performance analytics||100||VMWare||Clearstone Venture Partners, Tech Coast Angels, Acartha Technology Partners|
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