Avago Technologies to buy LSI Corporation for $6.6 billion

Singapore based Avago Technologies Limited has announced the acquisition of California based LSI Corporation.  The deal value of $6.6 billion ,which Avago is planning to pay in cash.  This is equivalent to $11.15 per share, which is 41% premium to Friday's closing price of LSI Corporation on NASDAQ.

LSI Corporation was founded under name of LSI logic in 1981 as a semiconductor company.  As of now LSI designs and develops semiconductors and software that accelerate the storage in data centre and mobile networks.  

Avago Technologies is leading designer and developer of analog and optoelectronics components and sub-system.  SilverLake bought Avago from KKR and took public with-in three years.  SilverLake sold the holding last year but retained one board seat.  This deal is called SilverLake's best deal ever, generating return of over five times the initial investment.  

Under terms of the deal, Avago will pay $11.15 per share.  Moreover SilverLake will invest $1 billion as convertible notes.  These carries a coupon of 2% and conversion price of $48.04 per share.  This transaction is expected to strengthen and broaden Avago's product base.  Also it is expected to provide economies of scale to the company.  

Perficient Acquires CoreMatrix

Perficient Inc., an IT consulting firm based at St. Louis, Missouri, has acquired CoreMatrix, a cloud computing based consulting firm.

CoreMatrix is a provider of cloud computing consulting and social strategy development firm.  Company has experience of over 1800 cloud computing engagements serving mid sized to Fortune 500 companies.  Company was established in 2002 and is a sales-force gold alliance partner.  

Perficient is a technology consulting firm serving customers in North America.  Perficient helps its clients use internet based technologies to improve productivity and competitiveness along with increased customer engagement and strong relationships with suppliers and partners.  

Perficient's current revenue are approaching $400 million and CoreMatrix is a $15 million annual revenue consulting firm.  Earlier this year Perficient acquired Clear Task, another sales form focused firm.  Clear Task major focus was towards west coast while Core Matrix major source of revenue is from east coast.  This complements the prior acquisition.

Company is betting on the recent trend of decreasing operating costs by using cloud based servers.  This engagement also increases customer satisfaction and reduce operating costs.   

VEEVA : A cloud opportunity Gained

With in a span of six years if you reach $5 billion valuation !!!! Its Huge....

Veeva Systems was founded in 2007.  It provides enterprise level cloud based solutions to life-science

companies.  Till Tuesday October 15' 2013 Veeva Systems had raised $7 million out of which $4 million came from Emergence Capital Partners.  Came Wednesday and they flaunted the markets and analysts by raising $261 million. 

Veeva was first supposed to come up at a price of $12 to $14. They increased it to $16 to $18 one week prior to IPO, but finally came up at $20. And the story of uprising doesn't ends here. The stock price raised to almost double on first day of trading. It reached an intra-day high of $39.64. 

Now the question of the day is why so much fuss? The answer is - Its not fuss but Cloud services is the future of tomorrow.  Whenever you check your mail via Gmail or upload a video on youtube or share your latest snap on facebook....you are using cloud. But the future is more bigger than this. From production systems and workloads, creating testing scenarios for complex systems cloud is every where to full fill business needs. 

As per a latest report @Gartner, cloud services market is expected to reach $131 billion by end of 2013. Most of this market approximately 59% is concentrated in North America and cloud advertising is the largest sub-segment of Cloud services. 

Veeva is just an opportunity gained. They provide cloud based enterprise solutions to life science industry. As life science companies mostly has a very long gestation period. So they need a large ...very large amount of data and solutions for sustaining.