major acquisitions (2012-13) in it industry by nirav khandhedia

Major

Acquisitions

in IT

Industry

Year 2012-13

Nirav Khandhedia, 12030242017

Major Acquisitions in IT Industry

VAM – Executive MBA – 2012-15 – Symbiosis Centre for Information Technology

2 Contents

Amdocs acquires Bridgewater Systems, 2012 ........................................................................................ 3

Amdocs acquires Actix, 2013 .................................................................................................................. 4

Amdocs acquires Celcite, 2013 ............................................................................................................... 5

TCS acquires French IT Services firm ALTI ............................................................................................... 6

IBM acquires Kenexa, 2012 ..................................................................................................................... 7

IBM Acquires Texas Memory System, 2012 ............................................................................................ 8

Wipro acquires Promax, 2012 ................................................................................................................. 9

Western Digital (WD) acquired Hitachi Global Storage Technologies (Hitachi GST), 2012 .................. 10

Infosys BPO acquires Portland Group Pty Ltd, 2012 ............................................................................. 11

SAP acquires SuccessFactors, 2012 ....................................................................................................... 12

References ............................................................................................................................................ 13



3 Amdocs acquires Bridgewater Systems, 2012

Amdocs (NYSE: DOX) acquired 25,178,827 common shares of Bridgewater Systems Corporation

(TSX: BWC) ("Bridgewater"), a publicly held provider of policy management and network control

solutions, representing 100 percent of Bridgewater's outstanding common shares, for CAD$8.20 per

share in cash, through a wholly owned, indirect subsidiary of Amdocs. Prior to the acquisition,

Amdocs did not own any securities of Bridgewater. The transaction is valued at approximately

CAD$211 million.

This acquisition enables Amdocs to offer pre-integrated charging and policy management solutions

to enhance service provider data offerings. The acquisition will further expand Amdocs' Customer

Experience Systems (CES) portfolio, allowing service providers to implement new value-based data

monetization strategies to capitalize on the data explosion.

Brian Shepherd, group president for Amdocs expressed that the strategic acquisition will enable

service providers to completely redefine the real-time data experience and maximize the return on

their network investments.

Ed Ogonek, President and CEO for Bridgewater, mentioned that following this acquisition, service

providers will be able to benefit from data experience solutions based on a pre-integrated

combination of Amdocs' leading convergent charging technology and Bridgewater's advanced policy

control capabilities that address the increase in demand for high-bandwidth services and the

exponential growth of smart phones and other connected devices.

Thus, while Amdocs and Bridgewater share numerous top-tier customers, including Bell Mobility,

Sprint and Telstra, the acquisition will create synergy in product and solution, and Amdocs will be

able to benefit the customers with most advanced solution.



4 Amdocs acquires Actix, 2013

Amdocs (NYSE: DOX), the leading provider of customer experience systems and services, acquired privately-

held Actix, the leading independent software provider of mobile network optimization solutions, for

approximately $120 million in cash. This acquisition expands Amdocs' customer experience portfolio further

into the network domain to manage customer experience across both networks and IT.

With this acquisition Amdocs expands its CES (Customer Experience Systems) portfolio with geo-located

network data that will drive a variety of optimization use cases. The acquisition positions Amdocs as the first

vendor to offer customer experience-driven network optimization based on a holistic view of the customer

experience across all networks, BSS and OSS (business and operational support systems).

Amdocs and Actix together will create synergy in terms of better product to enhance customers’ revenues.

Geo-located network information provided by Actix's solutions, combined with customer data and capabilities

from Amdocs' market-leading policy management, BSS and OSS systems, will allow service providers to

support sophisticated customer experience use cases and take proactive action based on network

performance to modify and improve the experience of a specific customer or group of customers. As a result,

service providers will be able to differentiate the customer experience and achieve cost-efficiencies with

improved automation and optimization of their existing networks, as well as when rolling out new network

technologies, such as LTE and small cells.

Bill McHale, chief executive officer of Actix, understands that together, Amdocs and Actix, will continue to

pioneer development in network optimization, enhancing the position as the leading provider of

network-independent solutions in this area. The combination of assets, spanning network and IT, will

offer service providers the most powerful customer experience driven network optimization solution

available.

Rebecca Prudhomme, vice president of product and solutions marketing for Amdocs, says "With this

acquisition, Amdocs will continue to lead the way in customer experience innovation, Linking network

knowledge to customer insight, we will continue to deliver on the promise of our CES 9 portfolio to

help service providers unleash the power of experience, while delivering operational efficiencies."



5 Amdocs acquires Celcite, 2013

Amdocs (NYSE: DOX), the leading provider of customer experience systems and services, acquired

substantially all the assets of Celcite Management Solutions LLC for approximately $129 million in cash. This

acquisition expands the Amdocs customer experience portfolio further into the network software domain to

manage customer experience across both networks and IT.

The acquisition of Celcite builds upon and enhances the recent acquisition of Actix, and demonstrates Amdocs’

continued commitment to its network software and services strategy. By combining Actix’s market leading

products with Celcite’s comprehensive network management and Self Optimizing Networks (SON) services and

offering capabilities, Amdocs will be able to offer service providers comprehensive equipment-agnostic

optimization solutions.

In addition, Amdocs will be expanding its CES (Customer Experience Systems) p portfolio with quality-of-

service (QOS) focused, geo-located network data that will drive a variety of optimization use cases. The

acquisition will position Amdocs as the first supplier to offer customer experience-driven network

optimization software and services based on a holistic view of the customer experience across all domains.

Working as one, Amdocs, Actix and Celcite will be able to provide communication service providers around the

globe with a wide range of product-led services to better optimize their hybrid mobile networks, including

solutions that can accelerate the rollout of existing networks and new network deployments such as LTE, Wi-Fi

and small cells. These solutions will be agnostic to manufacturers of network equipment and components.

In addition to product and solution synergies, Amdocs and Celcite share several top tier customers.

Rahul Sharma, founder and chief executive officer at Celcite says “Together, Amdocs, Celcite and Actix will

emerge as the preferred provider of network management and SON solutions to service providers

worldwide. With the combination of our people, assets, and product/services expertise, we will offer

unmatched end-to-end offerings to relieve customers’ core network challenges, including capacity

and rollout, and help them tie the customer experience to the network in real-time.”

Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs, says “Amdocs customers

must optimize their networks to handle the data explosion and reduce associated costs. One of their

largest pain-points is dealing with issues that arise within the radio network, which are typically

responsible for a large percentage of all customer satisfaction and churn problems. The acquisition

will enable Amdocs to better offer our customers’ solutions (both products and services) for the

management and Radio Access Network (RAN) optimization of all mobile networks including 2G, 3G,

LTE and small cells to maximize the return from their network assets.”



6 TCS acquires French IT Services firm ALTI

Tata Consultancy Services (BSE: 532540, NSE: TCS), a leading IT services, consulting and business solutions

firm, completed the acquisition of ALTI SA during an official ceremony under the patronage of Arnaud

Montebourg, Minister for Economic Regeneration for the French Republic. The CEO and Managing Director for

TCS, N Chandrasekaran, and ALTI’s founders signed the final agreement to commence the integration of ALTI

into TCS’ operations in France. The acquisition had been initially announced in April 2013.

A privately-held company with revenues of €126 million in 2012, Alti SA is regarded as one of the top 5

system integrators of SAP solutions in France. It includes several top French corporations in the banking,

financial services, luxury, manufacturing and utilities sectors as its key customers.

During the official ceremony, TCS unveiled plans to further activate the capabilities and the talent pool it has

acquired, by setting up a new TCS SAP Innovation Centre. The centre will seek to develop cutting edge

enterprise solutions for multiple industries, in co-innovation with TCS’ customers.

N Chandrasekaran, CEO and Managing Director, TCS, said, “Today is a historic day for our company in

France, which will see us emerge as a much stronger player in the local market and sets the platform

for our future growth in the region. There are tremendous synergies between TCS’ global capabilities

and Alti’s local talent base and knowledge, which will enable us to better service our clients in France

and help make their businesses more competitive. As a long term strategic market for TCS, with

leading-edge infrastructure and a highly skilled engineering talent pool, France was a natural

destination for us to invest in toward our future growth.”

Arnaud Montebourg, The Minister for Economic Regeneration of the French Republic, said, “The important

investments made by TCS in its two sites in France (Ile-de-France and Lille) since February 2013 are

true testimonials to the capability of France to welcome and integrate companies from abroad that

have installed themselves on our soil.”

In recognition of these initiatives, the company had been conferred the special award for Investment and

Innovation by the Greater Paris Investment Agency in 2012. This acquisition will increase the company’s

employee base in France by 500% and propel it into the list of the top IT services firms in the country.



7 IBM acquires Kenexa, 2012

IBM (NYSE: IBM) closed its acquisition of Kenexa in Dec 2012. Kenexa bolsters IBM's leadership in helping

clients embrace social business capabilities while gaining actionable insights from the enormous streams of

information generated from social networks every day. The net purchase price is approximately $1.3 billion.

Kenexa, a leading provider of recruiting and talent management solutions, brings a unique combination of

Cloud-based technology and consulting services that integrates both people and processes, providing solutions

to engage a smarter, more effective workforce across their most critical business functions. Kenexa

complements IBM's strategy of bringing relevant data and expertise into the hands of business leaders within

every functional department, from sales and marketing to product development and human resources.

"By creating a smarter workforce, employees can drive innovation to bring products and services to

market faster, resolve problems before they arise to improve customer service, and increase sales by

building new skills -- linking the right experts to the right clients," said Alistair Rennie, general

manager, social business, IBM. "The combination of Kenexa's world-class human capital

management solutions and IBM's social business and analytics leadership uniquely positions IBM to

help clients generate real returns from their social business investments, while helping them to be

more competitive in their markets."

Kenexa is an industry leader in cloud-based software and recruiting process outsourcing (RPO.) Kenexa

supports more than 8,900 customers across a variety of industries, including financial services,

pharmaceuticals, retail and consumer, including more than half of the Fortune 500.

Since IBM announced its intent to acquire Kenexa in August, Kenexa saw continued momentum with

customers around the globe. Kenexa has signed sizeable, multiyear contracts with several major companies,

and recently announced that Cargill, an international producer and marketer of food, agricultural, financial and

industrial products and services, has signed a three-year agreement to use Kenexa to implement, develop and

oversee an employee engagement survey to its entire workforce of 140,000 employees around the world.

More than 60 percent of Fortune 100 companies have licensed IBM's solutions for social business.

With closing of this acquisition approximately 2,800 Kenexa employees in 21 countries joined IBM. Consistent

with its strategy, IBM continues to support Kenexa clients and enhance Kenexa technologies while allowing

these organizations to take advantage of the broader IBM portfolio.



8 IBM Acquires Texas Memory System, 2012

IBM (NYSE: IBM) completed its acquisition of Texas Memory Systems (TMS), a privately held company based

in Houston, Texas. Financial terms of the deal are not disclosed. TMS is a leading developer of high-

performance flash memory solutions.

Founded in 1978, TMS designs and sells solid state memory solutions as the RamSan family of shared

rackmount systems and Peripheral Component Interconnect Express (PCIe) cards. The products are designed

to help companies improve system performance and reduce such critical issues in the data centre as server

sprawl, power consumption, cooling, and floor space requirements. Leveraging such solutions can help

organizations save money, improve performance and invest more in innovation.

“Flash technology is a game changer for our clients and IBM is committed to delivering industry-leading Flash-

optimized capabilities as a cornerstone of our Smarter Storage strategy," said Brian Truskowski, General

Manager, IBM System Storage and Networking. "The TMS solutions extend our broad portfolio of Flash-

optimized storage arrays and flash optimization software, providing our clients unmatched value.”

IDC estimates the amount of solid state storage solutions being shipped into the enterprise will grow

significantly, reaching nearly 3 Exabyte by 2016.

TMS, powered by 100 skilled employees, will be integrated into IBM Systems and Technology Group. With

acquisition being completed, IBM plans to invest in and support the TMS product portfolio, and will look to

integrate over time TMS technologies into a variety of solutions including storage, servers, software, and

PureSystems offerings.

“IBM understands the positive and dramatic impact that solid state technology can have on storage and server

infrastructures, and once the acquisition is complete we look forward to advancing the technology even

further. With the global reach of IBM, we expect to grow the engineering staff and product lines much faster

than we could before,” said Holly Frost, founder and CEO of TMS.



9 Wipro acquires Promax, 2012

Wipro Limited acquired Promax Applications Group (PAG), a leading player in trade promotion planning,

management and optimization solutions space for a total purchase consideration of AUD 35 million, in an all-

cash deal. PAG, having revenues worth AUD 15-16 million, is headquartered in New South Wales, Australia

and has over 45 customers across verticals, like F&B, OTC pharmaceuticals and beer.

As per industry estimates, consumer-focused companies spent 12 to 25 per cent of their gross annual sales on

trade promotions. Organizations were increasingly leveraging analytics to enhance effectiveness and maximize

the return on investment (ROI) of their spending on trade promotions, stated an official release.

K.R. Sanjiv, senior vice-president and global head, Analytics and Information Management, Wipro, said,

"Analytics is a key growth driver of Wipro's growth strategy. The acquisition of Promax Applications Group will

strengthen our positioning and capability in management, analytics & optimization of trade promotions, and

further extends our leadership in analytics and information management services."

Combining PAG's deep industry expertise with Wipro's proven experience in delivering large business solutions

to global clients would enable their clients to maximize the ROI of Trade Promotion spends and will create

synergy for the Wipro and acquired PAG.

Don Nicol, CEO of PAG, added, "PAG will help Wipro to differentiate its offerings in the trade and marketing

management space through an added value proposition. The combined entity will provide clients access to an

enhanced portfolio of technologies and solutions, and provide employees enhanced training, growth and career

opportunities."

Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction.

The newly formed entity is called as Wipro Promax Analytics Solutions Pty Ltd.



10 Western Digital (WD) acquired Hitachi Global Storage Technologies

(Hitachi GST), 2012

Western Digital Corp. (NYSE:WDC) acquired Viviti Technologies Ltd. (formerly Hitachi Global Storage

Technologies), effective Mar. 8, 2012, for $3.9 billion in cash and 25 million shares of WDC common stock

valued at approximately $0.9 billion. Hitachi, Ltd. now owns approximately 10 percent of WDC shares

outstanding, and it has the right to designate two individuals to the board of directors of WD.

The cash portion of the purchase price was financed by a $2.3 billion, five-year term loan, short-term financing

under a $500 million revolving credit agreement and existing company cash balances. The company expected

the transaction to be immediately accretive to earnings per share on a non-GAAP basis, excluding acquisition-

related expenses, restructuring charges and amortization of intangibles. In addition, the company expects to

maintain a positive net cash position.

The new WD operates with WD Technologies (WD) and HGST as wholly owned subsidiaries. Aggregated

revenues of the two companies in 2011 were $15 billion.

"The completion of this acquisition is a truly momentous event in the 42-year history of our company," said

Coyne. "With ownership of two successful companies and the best talent available in the industry, we expect to

accomplish great things as we build the new WD to be the world's leading storage solutions provider with the

industry's deepest technology capability, broadest product portfolio and best-in-class execution. Similar to

successful multi-brand models in other industries, the two subsidiaries will compete in the marketplace with

separate brands and product lines while sharing common values of customer delight, value creation, consistent

profitability and growth."

"With a significantly broadened customer base and expanded resources, the new WD is in a strong position to

seize the growth opportunity in stored digital content," said Coyne. "We have acquired a strong presence in the

traditional enterprise market, substantially increased our presence in the industry's fastest-growing segments-

cloud and mobility-and improved our capability to address new market initiatives such as enterprise SSD,

storage solutions for small business and low-profile HDDs and hybrid drives for Ultrabooks™. As a result, WD is

better positioned than ever for success."



11 Infosys BPO acquires Portland Group Pty Ltd, 2012

Infosys BPO Limited, the business process outsourcing subsidiary of Infosys Limited (NASDAQ: INFY), acquired

all of the outstanding share capital in Australia-based Portland Group Pty Ltd, a leading provider of strategic

sourcing and category management services, for consideration of AUD 37 million.

Portland Group was founded in 1999 and today counts several large ASX 200 organizations within the Australia

region as clients. It is headquartered in Sydney and has offices in Melbourne, Brisbane, and Perth. The

company reported revenue of approximately AUD 31.3 million for the fiscal year ending 30 June 2011. The

company employs 113 professionals.

Swaminathan D, CEO and MD, Infosys BPO said, "We are delighted to have an outstanding team of domain

specialists in Portland Group join us. This acquisition would significantly deepen our capabilities and domain

expertise in our Sourcing and Procurement practice. Further in a dynamic marketplace such as Australasia this

will strengthen the top-end of our service offering in the strategic sourcing and category management

functions. This will also enhance the competitiveness, spread of offerings and global reach for our clients."

Gavin Solsky, CEO of Portland Group Pty Ltd said, "We believe the combination of Portland Group and Infosys

will provide our clients with a highly compelling proposition that does not currently exist in the sourcing and

procurement services market in Australia. It will allow us to offer our clients a truly integrated and globally

competitive solution to deliver procurement benefits in the most effective and efficient way possible."

Portland Group's expertise in strategic sourcing and category management services is expected to

complement Infosys BPO's global Sourcing & Procurement capabilities to create a market offering that will

positively impact client's business efficiency and effectiveness.



12 SAP acquires SuccessFactors, 2012

SAP America acquired SuccessFactors, Inc. (NYSE: SFSF) ("SuccessFactors"), the market-leading provider of

cloud-based human capital management (HCM) solutions, pursuant to which a subsidiary of SAP offered to

acquire all outstanding shares of common stock of SuccessFactors for $40.00/per share in cash, representing

an enterprise value of approximately $3.4 billion.

The acquisition was completed via a short-form merger under Delaware law pursuant to which Saturn

Expansion Corporation, an indirectly wholly owned subsidiary of SAP, was merged with and into

SuccessFactors, with SuccessFactors surviving the merger as a wholly owned subsidiary of SAP America, Inc.,

the U.S. operating subsidiary of SAP AG.

As a result of the merger, all outstanding shares of SuccessFactors that were not tendered into the previously

completed tender offer (other than shares held by SuccessFactors, SAP America or any of their wholly-owned

subsidiaries, and shares held by stockholders that properly exercise appraisal rights under Delaware law) were

converted into the right to receive $40.00 per share in cash without interest and subject to any required

withholding of taxes, the same consideration paid to stockholders in the tender offer.

SuccessFactors notified the New York Stock Exchange, Deutsche Börse, and the Professional Segment of

Euronext Paris of the completion of the acquisition and trading of shares of its common stock were suspended

on February 23, 2012 on each exchange pending delisting of such shares.

The acquisition adds SuccessFactors’ widely respected team and technology to SAP’s powerful cloud assets,

significantly accelerating SAP’s momentum as a provider of cloud applications, platforms and infrastructure.

The combination of SAP and SuccessFactors establishes an advanced end-to-end offering of cloud and on-

premise solutions for managing all relevant business processes.



13 References

www.amdocs.com

www.bridgewatersystems.com

www.celcite.com

www.actix.com

www.tcs.com

www.ibm.com/press/us/en/pressrelease/39501.wss

www.infosys.com

www.infosysbpo.com

http://www.wdc.com/wdproducts/library/company/investor/SupplementalInformation.pdf

http://www.wdc.com/en/company/hgst/

www.wipro.com

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