Yesterday, Cisco announced it would acquire Waltham-based CloudLock Inc. for $293 million. Having graduated from Bentley University, I have a special connection with Waltham. Waltham has become a hub outside “the hub” for tech companies. Home to companies like Constant Contact, Actifico, Carbon Black, Cryptzone, and Boston Dynamics watch city could consider tech city as its new nickname.
Since 2008 CloudLock has raised $35 million, the latest round being $6.7 million in Nov. 2014. With $35 million raised and a $293 million sale price, this acquisition should provide great returns to investors.
When compared to Microsoft’s $26 billion LinkedIn acquisition and SalesForce acquiring Demandware for $2.8 billion, Cisco’s acquisition of Cloudlock is just a blip on the radar for recent tech M&A.
With tech M&A heating up and big ticket prices being paid for tech companies, many in Silicon Valley are beginning to feel better about their unicorn bets. I still see it being a difficult road out of Silicon Valley for unicorns but, at least, the recent tech M&A frenzy proves there are plenty of buyers looking for tech companies with “reasonable” valuations and modest financing histories.
Ben Kotch is a managing director and investment committee member at Acquis Capital, LLC, a private investment firm that specializes in acquisitions. He has extensive experience with both private and public companies. Ben graduated with an economics degree from Bentley University where he concentrated in entrepreneurship and law.
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