Giant Acquisitions Happening in the IoT Continued

By Joyce Deuley

In our latest issue of The Connected Conversation, we mentioned that there were massive acquisitions occurring within the semiconductor markets with ripple effects happening amongst chip design firms and the consumer electronics space (To read more on this, click HERE). Here’s more information on Intel’s acquisition of Altera and ARM’s designs to acquire Sansa Security, along with PeopleNet’s purchase of Cadec Global, Inc. from last week.

Last Tuesday, Trimble’s PeopleNet acquired Cadec Global, Inc. in an effort to join its fleet management capabilities within the food service and private fleets across the country. Trimble will remain in its offices, but bring its back-end analytics capabilities and business intelligence to PeopleNet’s mobile platform and cloud-based technologies to “leverage the enhanced expertise of both organizations to bring innovative technology and service solutions to the foodservice and private fleet industries and the transportation industry as a whole,” according to Brian McLaughlin, PeopleNet president (PeopleNet).

Similarly, after months of negotiations Intel announced Monday that’s its intentions to acquire Altera would finally be realized over the next 6-9 months to the tune of $16.7 billion. This may seem like a reach for Intel, considering that Altera’s revenues for 2014 came in a shade under $2 billion (at $1.9 billion), but the electronics giant feels that its purchase will enable them to reach further into desired markets, such as the automotive space. According to Intel’s chief executive, Brian Krzanich,“ Intel’s growth strategy is to expand our core assets into profitable, complimentary market segments,” (NetImperative).

While the electronics market is being shaken up, I think we can agree that the semiconductor markets are experiencing shockwaves following Avago’s acquisition of Broadcom. In the midst, ARM also announced on Monday it’s plan to acquire Sansa Security, an Israeli security company, in addition to the release of its new subsystem meant to accelerate the development process for customized chips within embedded devices. ARM’s “mbed” initiative will help the company push itself further into the IoT-related chip markets, and coupled with its purchase of Sansa, we can expect new ARM-based chips to have a stronger layer of security as part of its core “design principle,” thus simplifying and standardizing end-to-end security within its offerings. The deal is expected to close for somewhere between $75 million and $85 million, perhaps as soon as the end of June (CNET).

While rollups were definitely expected to happen within the IoT markets, it seems that they’re rolling in much faster than we anticipated. Big strides are being made as the IoT steps towards maturation. Overvaluations may still occur, but what is apparent is that major players are done hanging in the shadows: they’ve figured out what they want and it’s only a matter of time before they get it.