The top IT channel deals of 2023
We recap 10 of the most impactful and talked-about tech deals that set 2023 up for success
2023 kicked off with no shortage of blockbuster channel deals as companies moved to expand market share, boost capabilities, and stake claims in emerging spaces.
From security to cloud computing to AI and more, powerhouse names came together in marriages poised to disrupt their respective sectors.
We recap 10 seismic acquisitions primed to shape technology this year and beyond.
Bam Boom Cloud to Pax8
In February 2023, cloud marketplace distributor Pax8 acquired Microsoft Dynamics 365 specialist Bam Boom Cloud in a move aimed at bolstering its business applications capabilities and expertise.
Bam Boom has over 135 employees globally and focuses on serving SMBs.
The acquisition is hoped to create a new market opportunity for Pax8's MSP partners to offer Microsoft Dynamics solutions.
Pax8 CEO John Street stated that with business process automation on the rise, the deal would enable Pax8 to develop new go-to-market strategies and services to help partners expand their Microsoft Dynamics offerings.
Together, Pax8 and Bam Boom could provide the programmes, services and resources to allow MSPs to capitalise on the $10.3bn market opportunity that Microsoft business applications represents.
Bam Boom CEO Vicky Critchley highlighted Bam Boom's passion for helping businesses build a strong foundation with Microsoft Dynamics 365 Business Central.
The acquisition will expand Bam Boom's reach in helping more businesses grow with Microsoft's business solutions.
Tangible benefits to Bechtle
German IT solutions provider Bechtle acquired British hardware procurement VAR Tangible Benefit as part of its strategy to expand in the UK market.
Founded in 1997 and based in London, Tangible Benefit has 66 employees and generated €70m in revenues in fiscal year 2021/22.
Its core business includes hardware sales, services, software licensing, security, networking, and lifecycle management.
Company founder Timothy Trotman was set to oversee the transition phase before handing leadership over to Bechtle, while all other Tangible Benefit managers would remain in their roles.
This acquisition came just five months after Bechtle UK bought UK IT service provider ACS Systems, as it aimed become one of the top 10 IT solutions providers in the UK.
With offices now in London, Manchester, Northampton and Chippenham, Bechtle is extending its UK footprint.
Bechtle EVP Konstantin Ebert welcomed the "highly qualified and motivated" Tangible Benefit team for their strong spirit and ambition.
Tangible Benefit sales director Nick Barrett noted that securing employees' futures and maintaining customer service were top priorities in the acquisition.
eBuyer acquisitions
Tech e-tailer eBuyer was acquired this year from West Retail Group by new owners Mark Reed and Rich Marsden for an undisclosed sum.
Ranking 15th in Top VARs, eBuyer reported £241m in 2021 revenues and employs over 200 people.
Marsden, an industry veteran who assumed the CEO role, and investor Reed are looking to drive "significant growth," possibly expanding into the EU.
Their partnership reunites a business relationship started in 1999.
Marsden has worked with eBuyer his whole career and said he had long aimed to acquire the company, trusting Reed to help deliver the deal.
Reed has 29 years in the technology and gaming industry, calling eBuyer's purchase "a natural step forward" with major growth potential.
West Retail Group owned eBuyer for 19 years, but it comprised less than a quarter of its 2021 revenues, with over £900m drawn from its Wren Kitchens brand.
All eBuyer staff and assets will remain intact under the new ownership looking to build on eBuyer's success.
Nowcomm to FourNet
The two UK partners of Avaya and Cisco, FourNet and Nowcomm, merged in a deal driven by complementary strengths and growth ambitions.
Manchester-based FourNet, reporting £37m in 2022 revenues, positions itself as Avaya's largest UK partner. It acquired Derby-based Nowcomm, one of few Cisco partners in the UK to simultaneously hold Gold, Master Security and Master Collaboration status.
The acquisition continues FourNet's buy-and-build strategy under private equity backer Palatine after purchasing C>Ways last May.
With over 200 staff now, FourNet serves government, local authorities, health organisations and utilities.
Founded in 2005 by former Cisco employees, 34-person Nowcomm brings elite Cisco credentials.
FourNet CEO Richard Pennington said the deal enables meeting demand for converged IT and communications solutions post-COVID.
Nowcomm co-founder James Baly dubbed it a "merging of like-minded businesses, both at the top of our game."
The unified entity aims to maintain leadership as the partner of choice for public sector and enterprise digital transformation projects.
Mipsology to AMD
In August, AMD acquired French startup Mipsology to bolster its AI software in a bid to challenge rival Nvidia's dominance in AI computing.
AMD said it would leverage Mipsology's expertise in accelerating AI inference performance to help develop its full AI software stack.
Financial terms were not disclosed.
Mipsology's software, Zebra, focuses on enabling high-speed AI inference on AMD's adaptive computing chips gained through the Xilinx acquisition. I
nference is critical for generating predictions from AI models.
The deal supports AMD's broader strategy articulated by CEO Lisa Su to provide leadership GPUs, CPUs and adaptive solutions for AI training and inference across cloud, edge and endpoints.
This requires attracting developers to build on AMD's hardware, which Mipsology will now help advance through AMD's Unified AI Stack for cohesive support.
With AI as a top priority and key driver of silicon demand, AMD aims to strengthen software capabilities to unlock AI potential for customers worldwide in its battle with Nvidia.
Splunk to Cisco
Networking giant Cisco agreed in September to acquire unified security and observability platform Splunk for approximately $28bn.
The cash deal values Splunk at $157 per share, representing a 31.3 per cent premium over its prior closing price.
The acquisition aims to drive the next generation of AI-powered security and observability, pending expected regulatory approval in 2024.
Cisco's stock declined over 3.5 per cent on the news, while Splunk's jumped 23 per cent in pre-market trading.
The deal comes a year after reports of Cisco weighing a $20bn+ offer.
Cisco CEO Chuck Robbins said combining forces will help secure organisations of all sizes.
Splunk CEO Gary Steele similarly cited creating a global security and observability leader harnessing data and AI.
Steele will remain with Splunk as part of Cisco's executive leadership team.
The two companies have been long-term trusted partners focused on innovation and customer experience that expect to benefit from unified strengths.
VMware to Broadcom
One of the most talked-about deal of the decade, Broadcom's record $61bn acquisition of VMware officially closed in 2023, over a year after it was first announced.
VMware will now operate as VMware by Broadcom under the leadership of Broadcom president and CEO Hock Tan.
Tan expressed excitement about VMware joining Broadcom's innovation-focused team in building the world's leading infrastructure technology company.
He highlighted this milestone for customers globally in addressing complex IT infrastructure challenges through hybrid cloud environments and an "apps anywhere strategy."
The mega-merger obtained regulatory clearance from Australia, Brazil, Canada, China, the EU, Israel, Japan, South Korea, South Africa, Taiwan, the UK and other major markets after China granted approval this week.
While a major win for Broadcom, VMware's employees face uncertainty, with reports of possible major layoffs concentrated in non-engineering roles.
Staff were also reportedly told they may receive severance terms, new employment offers, or short-term contracts that ultimately end their roles post-acquisition.
Imperva to Thales
Thales completed its acquisition of cybersecurity firm Imperva earlier than originally expected in 2024.
First announced in July 2023, the deal is set to create a "global leader in cybersecurity" with over 5,800 experts across 68 countries and expected 2024 revenues of €2.4bn, including civil and defence activities with double-digit growth thereafter.
Thales says the deal will generate significant value for shareholders in line with targets set when the acquisition was revealed.
Thales Chairman and CEO Patrice Caine marked it as a new step in expanding Thales' global cyber capabilities for enterprises and governments worldwide, excitedly welcoming Imperva teams.
He highlighted the synergies, opportunities and innovations from combining the entities' shared commitment to trust.
With escalating cyber threats, Thales is now uniquely positioned to help customers secure their entire digital ecosystem - applications, data and identities.
Jesper Trolle of Exclusive Networks endorsed the deal between two valued partners, calling it key to Thales' ambition to lead cybersecurity globally by reinforcing data security and expanding into application security.
The acquisition is Thales' ninth in digital security and second largest ever after Gemalto.
Combined with other recent deals like Tesserent and OneWelcome, integrating Imperva significantly boosts Thales' global cyber business.
Sapphire to NTT DATA
NTT DATA Business Solutions acquired London-based SAP and ServiceNow channel partner Sapphire with 420 employees to strengthen its position in the SAP mid-market and expand its ServiceNow capabilities.
Backed by Horizon Capital since 2019, Sapphire delivers software and services primarily to mid-market customers in the US and UK.
The deal underscores NTT DATA's efforts around SAP in the mid-market as a global SAP strategic partner.
NTT DATA Business Solutions CEO Norbert Rotter said Sapphire's expertise complements his company's strengths and will enable comprehensive service to UK and US SMEs, increasing market share in both countries.
For Sapphire, the deal aids global expansion ambitions.
Sapphire CEO Vince De Luca expressed excitement about the investment potential and global influence from joining one of the world's largest digital operations providers.
He said it's a transformative chance for Sapphire's team to scale internationally in unprecedented ways by becoming part of NTT DATA Business Solutions in a journey they eagerly embark on together.
Bluecube to Ekco
Dublin-based IT provider Ekco acquired UK cybersecurity company Bluecube for an undisclosed sum, more than doubling Ekco's UK presence.
It is Ekco's largest purchase yet and fourth acquisition in the past year, strategically augmenting its security offerings and incident response capacities to strengthen services for UK clients amid rising threats.
The $1tr global managed services market is forecast to boom as demand for trusted IT partners grows.
The deal aligns with Ekco's European expansion strategy driven by acquisitions and new US offices alongside organic growth.
Incorporating Bluecube's 200+ cybersecurity specialists and customer base boosts Ekco's ability to serve UK organisations relying heavily on managed IT services.
Both companies welcomed the culturally and operationally strong fit to meet evolving customer needs.
For Ekco, it furthers the vision of providing responsive security solutions to a fast-expanding customer base.
Coming off European acquisitions over the past year, Ekco's trajectory will likely persist following substantial investment from London PE firm Corten Capital earlier this year aimed at funding future strategic purchases.