In a significant achievement, Tidal Partners, a mergers and acquisitions advisory firm founded last year by former dealmakers from Centerview Partners, successfully advised Cisco Systems on its high-profile $28 billion acquisition of cybersecurity firm Splunk. The California-based firm, headquartered in Palo Alto and led by technology bankers David Handler and David Neequaye, has rapidly gained recognition for its prowess in the sector.
Despite having a lean team of approximately two dozen professionals, according to their website, Tidal Partners emerged as the exclusive financial advisor to Cisco for this substantial deal. Conversely, Splunk received advisory services from well-established investment banking giants Qatalyst Partners and Morgan Stanley. David Handler, a prominent figure at Tidal Partners and previously associated with Centerview, played a pivotal role in advising Cisco over the years. His portfolio at Centerview included advising on notable deals like Cisco’s $5 billion acquisition of NDS Group in 2012 and the $3.7 billion purchase of AppDynamics in 2017.
“We’ve known David (Handler) and his partner David (Neequaye) for a very long time. They did a great job for us, and so we’ve had that relationship for a long time,” Cisco CEO Chuck Robbins said in an interview on Thursday.
The success of Tidal Partners is part of a broader trend where technology-focused bankers are increasingly venturing out to launch their firms. This trend has gained momentum amidst a deal-making slowdown within the technology sector. Three former Qatalyst Partners bankers recently launched AXOM Partners, a technology-focused investment banking boutique, adding to the sector’s wave of entrepreneurial initiatives. Handler and Neequaye, the co-founders of Tidal Partners, were instrumental in establishing Centerview’s technology advisory group in 2008. The group went on to advise several major technology companies, including Qualcomm Inc and Twilio, besides Cisco.
Since its inception last year, Tidal Partners has been actively advising on various transactions, showcasing its growing influence in the industry. Notable transactions include ServiceNow Inc.’s acquisition of G2K Group and Bloom Energy’s successful $550 million convertible notes offering. With previous experience at UBS Group, Handler found himself in a legal dispute with Centerview over a pay-related matter after his departure, shedding light on the dynamics within the industry.
