Tech Companies Lead M&A Activity Last Week

​Last week, a variety of industries partook in M&A activity. Below we highlight five deals that were announced, the largest of which was Cisco Systems’ acquisition of Duo Security for $2.35 billion.

• Services Group of America, a provider of a broad array of foodservice solutions, has agreed to sell five of its foodservice companies to US Foods (NYSE: USFD) for $1.8 billion. Collectively known as SGA’s Food Group of Companies, the five companies – Food Services of America, Systems Services of America, Amerifresh, Ameristar Meats, and GAMPAC Express – provide foodservices ranging from distribution and logistics to produce and meat sourcing. “This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company,” said US Foods CEO Pietro Satriano.

• SoftBank Group subsidiary ARM has reached a definitive agreement to acquire data analytics-provider Treasure Data for $600 million. ARM is a British computer chip designer, and this acquisition is part of its push into the Internet of Things (IoT). Treasure Data’s platform provides clients with data insights to help them make better marketing decisions and improve customer loyalty. The platform stores and analyzes data from a variety of sources, including mobile devices, web-based applications, and physical sensors. Treasure Data’s platform is used primarily in the automotive, entertainment, IoT, and retail industries.

• Fortive (NYSE: FTV), the conglomerate parent of more than two dozen manufacturing and industrial technology companies, is set to acquire software firm Accruent for $2 billion. Based in Austin, Texas, Accruent is an industry-leading provider of physical resource management software. Using its cloud-based framework, the company helps over 10,000 global clients extend the lifecycle of assets, ensure full compliance, and reduce safety risks. Fortive CEO James Lico said Tuesday: “The complementary strengths of Accruent, Gordian and Fluke Digital Systems [Fortive subsidiaries] will create an industry-leading IOT portfolio consisting of connected devices, software enabled workflows, and data analytics.”

• North America’s largest specialized flatbed transportation company, Daseke (NASDAQ: DSKE), is to be joined by Builders Transportation Company for a $53.8 million price tag. Headquartered out of Memphis, Builders operates 300 company trucks and 500 spread-axle trailers, hauling various steel, aluminum, and iron materials, as well as heavy machinery. Daseke CEO Don Daseke said, “They work with A-list customers, and like our other operating companies, have a passion for their people. The company has been in business since 1954 and it has a long legacy as a family-run operation. They will be a great addition to the Daseke family.” The company operates in all 48 contiguous states but focuses primarily in the Eastern two-thirds of the country.
  

• Cisco Systems is set to add closely held Duo Security to its portfolio of cybersecurity offerings for $2.35 billion in cash. Duo is a provider of cloud-based internet security services, which are designed to protect organizations against data breaches. The service uses two-factor authentication, helping to identify a company’s employees across a range of devices or applications. As cybersecurity becomes an increasingly integral aspect of the digital economy, Cisco has beefed up its security software products, furthering the company’s shift away from its focus on network switches and other gear. For Duo, the deal dramatically expands its market by giving it access to the 800,000 customers that use Cisco’s products.