Previously, Alphabet discussed with advisors about the possibility of acquiring HubSpot, an online marketing software company with a market value of $35 billion.
According to sources, Alphabet has met with advisers from investment bank Morgan Stanley in recent days to consider making an acquisition offer for HubSpot.
The sources added they are discussing how much to offer and whether antitrust regulators will approve the deal.
If realized, this will be Alphabet’s largest acquisition ever. But the above sources said that Alphabet has not yet sent an offer to HubSpot and there is no certainty that they will do so.
Google logo at headquarters in Mountain View, California (USA). (Photo: AFP/TTXVN)
HubSpot was listed on the stock market in 2014, specializing in providing marketing software to companies with about 2,000 employees. In 2023, the company generated revenue of 2.2 billion USD and net loss of 176.3 million USD.
Despite the loss, investors are excited about HubSpot’s growth prospects, helping the company’s stock rise by as much as 50% over the past 12 months.
The deal with HubSpot will expand Google’s offerings in the booming customer relationship management (CRM) software market. The relationship with HubSpot also allows Alphabet to reach a larger base of enterprise customers.
In addition, the acquisition of HubSpot will also benefit Google’s cloud computing services business, which is looking to narrow the competitive gap with rivals Microsoft and Amazon.
Google may also argue to antitrust regulators that its acquisition of HubSpot will spur competition in the sales and marketing software sector, challenging the dominance of the likes of Salesforce and Microsoft. .
Many of these companies are enhancing their services with AI, a technology that Google is also investing in to gain an edge. Overall, mergers and acquisitions activity in the broad technology sector is growing.
Previously in January 2024, design software company Synopsys agreed to buy smaller rival Ansys for about 35 billion USD. Hewlett Packard Enterprise reached an agreement the same month to buy networking equipment maker Juniper Networks for $14 billion.
According to market research company Dealogic, technology companies account for the largest proportion of mergers and acquisitions activities in the first quarter of 2024. The total value of these deals has increased by more than 42% compared to the same period last year. last year’s period was about 154 billion USD./.
