EB's Top 50 M&As
Also see: The Best Kind of LEVERAGE
-- EDN, January 1, 2000
The most striking thing about this year's Electronic Business top 50 mergers and acquisitions is how communications companies (or in Intel Corp.'s case, communications-wannabes) dominate the list. Well over half of the acquisitions on our list participate in this hot sector. Lucent Technologies Inc., Cisco Systems Inc. and Intel were the dominant hunters, each scoring four acquisitions. Lucent easily topped the list with its $21-billion acquisition of Ascend Communications Inc. It also led in total amount spent for acquisitions-its four acquisitions totaled more than $25 billion. Cisco spent just about $9.7 billion. Intel spent just over $5.1 billion.
Also worth noting is the activity of Motorola Inc. this year. The company sold its discrete chip business, which should help it focus all its efforts on its embedded processors. Then it turned around and bought General Instrument Corp.-a maker of set-top boxes whose functionality is virtually determined by the embedded processor.
Also notable for the first time this year are acquirers from outside the technology industry. Investor groups like Texas Pacific Group and Citicorp Venture Capital are beginning to play an influential role in high-tech acquisitions. In fact, TPG recently invested a reported $150 million in a new company started in October by the founding management of Ascend, this year's top acquisition. The new company, called Zhone Technologies Inc., has raised more than $500 million, the largest equity financing ever for a communications start-up, according to the company.
| Rank | Target Name | Target Business Description | Acquirer Name | Acquirer Business Description | Announced | Effective | Deal ($M) |
| 1 | Ascend Comm. | Wide area networking equipment | Lucent Technologies | Telecomm equipment, software | 1/13/99 | 6/24/99 | $21,070.4 |
| 2 | Honeywell | Automation, control systems | AlliedSignal | Aircraft engines, radar | 6/7/99 | 12/2/99 | 15,495.9 |
| 3 | General Instrument | Communications systems | Motorola | Electronics products | 9/15/99 | Pending | 9, 430.2 |
| 4 | Cerent | Optical transport products | Cisco Systems | Inter-networking systems | 8/26/99 | 11/12/99 | 6,862.5 |
| 5 | Fore Systems | Network interfaces | GEC plc | Power, communications equipment | 4/26/99 | 6/30/99 | 4,000.3 |
| 6 | Raychem | Circuit protection devices | Tyco International | Fire protection systems | 5/19/99 | 8/25/99 | 3,523.9 |
| 7 | Platinum Technology | Integrated software | Computer Associates Int'l | Management software | 3/29/99 | 6/4/99 | 3,471.9 |
| 8 | Daewoo Electronics U.S. | Consumer electronics | Walid Alomar & Associates | Investor group | 8/16/99 | Pending | 3,200.0 |
| 9 | Level One Comm. | Integrated circuits | Intel | Microprocessors | 3/4/99 | 8/10/99 | 2,340.9 |
| 10 | Reltec Corp. | Network products | GEC plc | Power, communications equipment | 3/1/99 | 4/15/99 | 2,102.3 |
| 11 | GeoTel Comm. | Voice call software | Cisco Systems | Inter-networking systems | 4/13/99 | 6/24/99 | 1,850.9 |
| 12 | Wang Laboratories | Software services | Getronics NV | Computer services | 5/4/99 | 6/24/99 | 1,806.4 |
| 13 | Xylan | LAN hub systems | Alcatel SA | Telecomm equipment | 3/2/99 | 4/30/99 | 1,793.4 |
| 14 | Smart Modular Technologies | Semiconductors | Solectron | Printed circuit boards | 9/13/99 | 12/1/99 | 1,737.5 |
| 15 | Excel Switching | Switching systems | Lucent Technologies | Telecomm equipment, software | 8/18/99 | 11/3/99 | 1,672.1 |
| 16 | Motorola -SCG | Semiconductor components | Texas Pacific Group | Investor group | 5/11/99 | 8/5/99 | 1,600.0 |
| 17 | DSP Comm. | Chipsets for telecomm | Intel | Microprocessors | 10/14/99 | Pending | 1,581.8 |
| 18 | Genesys Telecomm. Labs | Call center software | Alcatel SA | Telecomm equipment | 9/28/99 | Pending | 1,491.0 |
| 19 | Data General | Minicomputers | EMC | Computer storage systems | 8/9/99 | 10/12/99 | 1,485.4 |
| 20 | Kenan Systems | Billing software | Lucent Technologies | Telecomm equipment, software | 1/11/99 | 3/1/99 | 1,484.4 |
| 21 | Visio | Design software | Microsoft | Computer software | 9/15/99 | Pending | 1,335.0 |
| 22 | Unitrode | Semiconductors, capacitors | Texas Instruments | Semiconductors, computers | 7/23/99 | 10/15/99 | 1,281.6 |
| 23 | VLSI Technology | Integrated circuits | Koninklijke Philips Elec. | Entertainment products | 2/26/99 | 6/23/99 | 1,204.9 |
| 2 | GTE Gov't Systems Units (3) | Gov't electronics | General Dynamics | Aerospace, defense equipment | 6/22/99 | 9/1/99 | 1,050.0 |
| 25 | Tektronix - Color Printing | Color inkjet printers | Xerox | Business machines | 9/22/99 | Pending | 950.0 |
| 26 | Nexabit Networks | Internet hardware | Lucent Technologies | Telecomm equipment, software | 6/25/99 | 7/19/99 | 896.0 |
| 27 | Marshall Industries | Distribution | Avnet | Distribution | 6/28/99 | 10/20/99 | 762.0 |
| 28 | Dialogic | Voice and data technology | Intel | Microprocessors | 6/1/99 | 7/13/99 | 733.1 |
| 29 | Harris Corp. Semiconductors | Communications equipment | Citicorp Venture Capital | Investor group | 6/2/99 | 8/16/99 | 700.0 |
| 30 | Sequent Computer Systems | Data center technology | IBM | Computer and office equipment | 7/12/99 | 9/24/99 | 685.8 |
| 31 | Lightera Networks | Routers | Ciena | Optical networking systems | 3/15/99 | 3/31/99 | 552.3 |
| 32 | ChipPAC | Semiconductor assembly and test | Citicorp VC & Bain Capital | Investor group | 3/15/99 | 8/5/99 | 550.0 |
| 33 | Forte Software | Enterprise software | Sun Microsystems | Computer and office equipment | 8/23/99 | 10/20/99 | 536.8 |
| 34 | NetGravity | Internet advertising software | DoubleClick | Internet advertising services | 7/12/99 | 10/27/99 | 502.5 |
| 35 | Monterey Networks | Fiber optic technology | Cisco Systems | Inter-networking systems | 8/26/99 | 9/29/99 | 501.0 |
| 36 | Tempo -Satellite Assets | Satellites | Hughes Electronics | Communications products and services | 6/7/99 | 6/7/99 | 500.0 |
| 36 | Ipivot | Internet commerce equipment | Intel | Microprocessors | 10/5/99 | 10/14/99 | 500.0 |
| 38 | Netcom Systems | Telecomm test products | Bowthorpe plc | Electronics products | 6/14/99 | 7/23/99 | 479.1 |
| 39 | StratumOne Comm. | Semiconductors | Cisco Systems | Inter-networking systems | 6/29/99 | 9/20/99 | 478.2 |
| 40 | Kingston Technology (Softbank) | PC memory cards | Synapse Capital | Investor group | 7/14/99 | 7/30/99 | 450.0 |
| 41 | Telogy Networks | Internet telephony products | Texas Instruments | Semiconductors, computers | 6/2/99 | 8/31/99 | 437.2 |
| 42 | Omnia Comm. | Data networking products | Ciena | Optical networking systems | 3/15/99 | 7/6/99 | 429.0 |
| 43 | Vantive | Customer relationship management software | Peoplesoft | Enterprise application software | 10/11/99 | Pending | 419.3 |
| 44 | Abrizio | Broadband semiconductors | PMC-Sierra | Semiconductors | 8/24/99 | 9/3/99 | 415.6 |
| 45 | Epitaxx | Optical detectors and receivers | JDS Uniphase | Telecomm components | 10/4/99 | Pending | 400.0 |
| 46 | SLC Technologies | Security and life systems technology | ITI Technologies | Electronic security equipment | 9/29/99 | Pending | 397.1 |
| 47 | Periphonics | Interactive voice-response systems | Nortel Networks | Telecomm equipment | 8/23/99 | 11/12/99 | 383.9 |
| 48 | Assured Access Technology | Remote access telecom equipment | Alcatel SA | Telecomm equipment | 3/4/99 | 3/18/99 | 350.0 |
| 49 | Control Data Systems | Systems integration | Syntegra (British Telecomm) | Systems integration | 7/1/99 | 9/1/99 | 340.0 |
| 50 | Edify | Customer relationship management software | S1 Corporation | Internet-based financial services | 5/17/99 | 11/11/99 | 313.9 |
| SOURCE: SECURITIES DATA COMPANY Note: Target company must an electronics company for data to be included in the list; deals announced between Jan.1 and Oct. 15, 1999 |
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-T.H.
