Here's to hoping that machine does a little more than "creak" back to life. Reading the 451 Report, the Q1 2009 numbers are ghastly - $9B in total transaction value for 646 transactions (avg. deal was almost $14M, eesh).
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Tech M.&.A. Moves Into Higher Gear
June 23, 2009, 8:49 am
The technology industry’s deal machine is creaking back to life.
With two weeks remaining in the second quarter, The 451 Group counts about $43 billion in announced tech mergers and acquisitions, which is five times the volume announced in the first three months of the year. Granted, it is still far below the levels in the year-ago quarter — roughly one-fourth as much — but it could suggest that tech deal-makers are finding their footing again.
A top executive at Cisco Systems, which has been one of the industry’s more active acquirers, recently hinted that it could be doing more deals later this year.
In addition, there’s a takeover feud brewing over Data Domain, a maker of computer storage products..
Almost all of the second-quarter deals were made by strategic buyers as opposed to financial firms, which reflects how private equity firms have been sidelined by tight credit markets and troubles at their current portfolio companies.
About one-third of the tech deal volume so far this year was what The 451 Group describes as asset sales, which involve a business that is shedding certain assets instead of being acquired outright. Such asset sales are often distress signals from cash-strapped companies, rather than signs of renewed confidence.
Even so, there seems to be growing optimism (or at least declining pessimism) about the tech M.&A. environment: In a new survey by The 451 Group, big tech buyers said they planned to be even more active in the second half of the year.
http://www.the451group.com/report_view/report_view.php?entity_id=58665&dealbook=refer
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