Oracle – Dyn Spotlight


Oracle Acquires Dyn


Financial Terms

  • Total Enterprise Value: undisclosed, percent acquired: 100%
  • EV/LTM Revenue: undisclosed; EV/LTM EBITDA: undisclosed


Transaction Highlights

  • On November 21, 2016, Oracle Corp announced that it will acquire Dyn, Inc, a provider of domain naming services (DNS) that monitors and optimizes online infrastructure.
  • As another play to further its cloud strategy, Oracle’s purchase of Dyn is intended to strengthen its infrastructure-as-a-service (IaaS) offering and turn Oracle into a one-stop shop for infrastructure services.
  • The acquisition follows Oracle CEO Larry Ellison’s statement at the OpenWorld conference, in which he declared Oracle’s intent to move aggressively into the IaaS market and challenge Amazon. However, a report published in April by Forrester Research ranked Amazon as the leading provider of public cloud infrastructure, while Oracle placed sixth, behind Microsoft, Salesforce, IBM, and Google.
  • For years, Oracle has been making acquisitions to bolster its cloud offerings in various areas, including LogFire for supply chain management, Ravello Systems for virtualization, and Blue Kai for data management.


Cloud, Infrastructure, and Growth Through M&A

  • Providers of dynamic host configuration protocol (DHCP), DNS, and IP address management (IPAM), collectively referred to as DDI, have seen rising demand in the past few years, especially from large telecom service providers and government organizations that need to centrally manage the growing number of IP addresses.
  • In addition, companies are continuing to migrate to the cloud, constantly generating more demand for cloud infrastructure for support.
  • The cloud infrastructure market is experiencing this increased demand through M&A activity; both strategic and financial buyers are seeing the increasing value of infrastructure services and investing in acquisitions to take advantage.


Recent Acquisitions in the Cloud Infrastructure Space

Date Target Buyer EV ($M) Notes
09/19/2016 Infoblox Vista Equity Partners 1,512.41 Infoblox Inc. provides network control, network automation, and DDI solutions.
08/26/2016 Rackspace Holding, Inc Apollo Global Management 4,948.98 Rackspace provides managed cloud services. Its two primary offerings are dedicated / private clouds and managed public clouds.
06/30/2015 OpenDNS Cisco Systems, Inc 635 OpenDNS provides Internet security and DNS services to protect customers from malware, botnets, phishing, and targeted attacks.


TBP was NOT an advisor to this transaction