In keeping with our mission to provide comprehensive advertising analysis, MediaRadar puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development.
This week, Microsoft boosts its cloud computing business with the acquisition of Movere, FedEx strengthens its Latin American presence with the acquisition of Cargex, and Chegg moves on an online coding boot camp.
Microsoft Acquires Cloud Computing Startup Movere
According to Microsoft, Movere’s technologies and capabilities allow them to offer easier and better solutions for customers to migrate their workloads and data storage to the cloud.
Strengthening its Azure business is vital for Microsoft as its current cloud infrastructure offerings trail behind Amazon Web Services (AWS). Both companies are seeking to capture a growing number of large businesses and government agencies with their cloud capabilities.
While AWS’ business is currently larger than Microsoft’s, Microsoft’s cloud business is growing more rapidly, partly due to acquisitions like Movere In the last quarter Microsoft’s Azure revenue grew 64 percent while AWS grew 37 percent.
FedEx is Acquiring Freight Forwarding Company Cargex
Cargex is based in Bogota, Columbia with over 25 years of experience in freight forwarding and export management of perishable goods. FedEx believes that the addition of Cargex will strengthen its air freight forwarding and customs brokerage capabilities.
The deal also offers growth opportunity in the Latin American region. It will also complement its FedEx Express solution for the international route between Miami and Columbia, giving customers greater access and more flexibility.
Chegg is Acquiring Thinkful
The education technology company Chegg (focused primarily on textbook rentals) announced the acquisition of online coding school Thinkful for $80 million, with potential additional payments of $20 million.
With this acquisition, Chegg will expand its already-growing Learning Services division to include a robust series of courses in online coding. The move is aimed at backing its mission for students to “accelerate their path from learning to earning”, in the words of Chegg CEO Dan Rosensweig.
Thinkful teaches coding through online lessons with guidance from mentors, career coaches, and peer guides. The business model behind Thinkful is as innovative as it is confident. The website makes an important guarantee: “If you don’t find your new career within six months of graduating, you don’t pay a cent.”
Graduates who do find speedy employment pay Thinkful about 15% of their income for three years. Chegg anticipates a total revenue of around $400 million for the 2019 calendar year.
In Other News
These are some other notable deals and developments from the past week:
- Cybersecurity company Palo Alto Networks announced that it is acquiring IoT security company Zingbox for $75 million.
- Prudential Financial announced that it has reached an agreement to acquire online insurance startup Assurance IQ, Inc. for $2.35 billion. The deal will fold a technology and data science-focused insurance seller into the financial services giant, allowing Prudential to grow their online base significantly.
- Younique, a skincare and makeup marketing company, has announced it will be separating from multinational beauty company Coty; Coty will be selling its controlling stake of Younique back to the original founders.
- Perrigo Company, an Irish-based manufacturer of private label over-the-counter pharmaceuticals, has announced that it has entered into a definitive agreement to acquire the branded OTC rights to Prevacid from British multinational pharmaceutical company GlaxoSmithKline.
- Facebook is getting into the dating game. After announcing the feature over a year ago, the matchmaking service is available in the US for users over the age of 18 as of Thursday. Facebook Dating uses an algorithm to match profiles based on factors of age, location, and interests. It includes features that integrate users’ Instagram profiles, allowing them to add up to nine followers to a “Secret Crush” category as a way to indicate a love interest if their crush has also added them.