Oracle Buys Internet Tech Provider Dyn to Grow Cloud Computing Service
Dyn was recently the subject of a major cyberattack that affected websites including Amazon, Netflix and Twitter
Oracle Corp. (NYSE: ORCL) is buying Dyn Inc., a cloud-based Internet performance and domain name system, for an undisclosed amount. The deal follows the recent denial-of-service attacks by hackers aimed at Dyn, affecting websites of the Internet tech provider including Twitter Inc. (NYSE: TWTR), Amazon.com Inc. (Nasdaq: AMZN) and Netflix Inc. (Nasdaq: NFLX).
Dyn manages the Internet connectivity performance for many of the world’s popular websites, offering Web-based products to monitor, control, and optimize online infrastructure. The target also offers domain registration services and email products. Dyn boasts LinkedIn Corp. (NYSE: LNKD), New York Times Co. (NYSE: NYT), Reddit, Salesforce.com Inc. (NYSE: CRM), Sodexo Inc., Spotify, and Wired.com among its list of more than 3,500 clients. Dyn’s services will allow Oracle customers to access Internet performance analysis, to help optimize infrastructure costs, maximize application and website-driven revenue, and manage cybersecurity risks. Cybersecurity has become a critical part of the technology M&A process recently.
Oracle, which sells software to big corporations, has been trying to shift more sales to cloud-based products as customers have begun shifting their time and interests. Dyn’s domain name system is a “critical core component and a natural extension” to the buyer's cloud computing platform, according to Oracle president of product development Thomas Kurian. The buyer recently purchased NetSuite, whose products include customer relationship management software, allowing Oracle to compete with the likes Salesforce.com and Microsoft Corp. (Nasdaq: MSFT).
M&A for Internet-related and cloud-based software has been picking up. Related deals include: Salesforce.com announcing plans to purchase cloud-commerce services distributor Demandware Inc. (NYSE: DWRE) in June 2016; Thoma Bravo agreed to buy enterprise software company Qlik Technologies Inc.; Bregal Sagemount’s acquisition of Discovery Data Inc.; and Siris Capital Group LLC’s agreement to buy Xura Inc. (Nasdaq: MESG).
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