Tech Sector's M&A Climate Improving: Study
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Large technology companies have been sitting on piles of cash for the past few years, patiently waiting for the economy to turn around. CIOUpdate takes a closer look at fresh data suggesting the time is right for major mergers and acquisitions in the tech sector.
After what can only be described as a desolate merger and acquisition landscape throughout most of 2009, a new study conducted by PricewaterhouseCoopers predicts an upswing in both the volume and value of deals this year.
And mergers and acquisitions in the high tech sector will be leading the charge.
According to the study, total closed deals in 2009 fell 53 percent and were valued at just under $36 billion, way down from 2008 when companies completed purchases valued at $77 billion.
Eighty-five percent of the value of the $36 billion in mergers and acquisitions last year came in the final six months.
"Driven by the surge of technology deals completed in the latter half of 2009, PwC expects deal activity to continue apace in 2010, albeit still below the levels seen in 2006-07," the report said.