All year long I was expecting some big news out of Hopkinton’s EMC – and Chief Executive Officer Joe Tucci delivered.
On Oct. 12, Dell announced a $67 billion deal to acquire EMC, yielding Mr. Tucci a hefty $27.2 million payday if the deal goes through.
One thing is clear: With a deal that size and the estimated $50 billion worth of debt required to finance it, Mr. Tucci will have to overcome big hurdles for the deal to close as planned in the fall of 2016.
Will Wall Street be willing to lend so much money to Dell? If so, at what interest rate? And how many of EMC’s 9,000 Massachusetts employees will ultimately pay for that debt service with their jobs?
2. Westboro’s hiring spree
While Worcester itself is not a high-tech hub, Westboro seems to be in hiring mode.
Two tech companies I wrote about this year come to mind.
The first, eClinicalWorks, said it plans to add 1,000 people in the next year or two. And why not, since it’s growing at a 36 percent annual rate with 2015 revenues of $400 million.
It is getting customers for its electronic medical records technology from around the world: $100 million worth of its revenues come from outside the U.S., according to my November interview with the company.
The second, hyper-converged technology supplier SimpliVity, is on a roll.
Chief Executive Officer Doron Kempel told me recently that revenues grew 50 percent from its second to third quarter. It has more than 750 employees and has been hiring at the rate of 10 people a week.
3. Changing of the guard
Two more traditional companies in Worcester County are changing their chief executives.
Frederick Eppinger, who has been at the helm of The Hanover Group for the last 12 years, is planning to step down in 2016. During his leadership, Hanover “more than doubled in size and has significantly grown its total capital, book value, and earnings power,” according to the company.
Mr. Eppinger’s list of local contributions include the AVID program in Worcester Public Schools; the EcoTarium; the YMCA; Boys & Girls Club investments; public library initiatives; Hanover Insurance Park at Fitton Field; United Way campaigns; CitySquare; and, The Hanover Theatre for Performing Arts.
Now his biggest job is to pick a successor who can sustain Hanover’s revenue and profit growth while preserving its culture.
In September, Douglas A. Berthiaume became chairman of Milford laboratory technology maker, Waters, to make room for a new chief executive, Chris O’Connell, a veteran of medical device-maker Medtronic.
Under Mr. Berthiaume, Waters “experienced a 35-fold increase in share value” since he led its November 1995 public offering.
4. StartUp Worcester
The Worcester Regional Chamber of Commerce launched StartUp Worcester in May.
It has accepted 12 startups led by locally educated entrepreneurs. Its “class of 2015 included digital game developers; an app to connect the college community; a biotech company integrating technology into food production; an idea for sustainable energy, water and food for small island communities; and a tech company looking to leverage existing infrastructure to increase the effectiveness of transportation systems,” according to the chamber.
They’ve taken office space in Running Start. And I hope that the entire class of 2015 will prosper after their time there is up.
If Worcester could attract venture capital investment for local startups, the heart of Massachusetts would be even more successful at turning its 36,000 locally educated students into local entrepreneurs.
5. IPG Photonics
One of the state’s more interesting 2015 stocks was fiber-laser maker, IPG Photonics.
Its shares had risen 21 percent through Dec. 15. At more than $90 a share, the price was well-below the $102.49 peak it reached in the spring.
But its financial results remain strong.
In the nine months ending September 2015, its revenues rose 21 percent to $678 million, while its net income increased 26 percent to $181 million, yielding an impressive 26.7 percent net margin.
Its ability to come up with new products and sustain its growth makes it one to watch in 2016.
