Two multibillion cloud company acquisitions in one day!
There were two multibillion dollar acquisitions of cloud companies on Tuesday by enterprises in the US.
IBM have acquired SoftLayer Technologies, a privately held cloud computing group for around $2bn, adding to IBM’s cloud computing portfolio at a time when they are pivoting towards providing services to enterprises, of which cloud is becoming increasingly more important.
The second acquisition was by Salesforce, who have bought ExactTarget, a cloud marketing service, to improve the marketing aspect of the Salesforce CRM platform. Salesforce paid around $2.5bn for ExactTarget, a 53% premium of their share price the previous day.
These purchases reflect a strong performance in the markets by publicly traded SaaS companies, and will likely encourage early stage investment of cloud services companies.