The Top 10 Channel Stories In A Topsy-Turvy 2016
Submitted by Michael Novinson on
2. The Infusion of Outside Money Into Channel Continues Unabated
Private equity giants and multinational conglomerates have poured money into the channel during 2016, and solution providers have opted to test the public market for the first time in years.
Chinese logistics firm Tianjin Tianhai announced plans in February to acquire Irvine, Calif.-based Ingram Micro, the world's largest IT distributor, for $6 billion. Ingram will be folded into $29 billion Chinese conglomerate HNA Group.
Not one, but two solution providers filed for an initial public offering in November for the first time since CDW went public in July 2013. Solution provider powerhouse Presidio, No. 22 on the CRN SP 500, could raise $400 million from its IPO, according to Renaissance Capital, while security solution provider Optiv Security, No. 25 on the CRN SP 500, hopes to raise around $100 million from its IPO.
Private equity also dug its tentacles deeper into the channel, with Blackstone Group buying Bangalore, India-based solution provider Mphasis from Hewlett Packard Enterprise in April for $825 million.
But that's not all. Cloud business applications provider Intermedia, No. 189 on the CRN SP 500, was purchased by Madison Dearborn Partners in September, and Microsoft Azure superstar 10th Magnitude received a significant investment from Pamlico Capital in October.