(InfoWorld) - Intuit"s move to acquire financial services vendor Digital Insight this week, and 3Com Corp."s deal to buy out Huawei Technologies Co. Ltd"s stake in their joint venture are signs that mergers and acquisitions activity continues unabated. The question is what this means for technology generally.
M&A activity is being seen as a healthy sign for technology. Mergers and acquisitions, however, can be a sign of consolidation in a mature market sector with slowing demand — in cases where there are too many suppliers for aging technology. Or it can be a sign of a vital, competitive sector and positive macroeconomic conditions such as a liberal lending environment and a healthy stock market.
In terms of transactions, 2006 is expected to yield 3,945 M&A deals, up from 3,455 in 2005 and the highest number ever, according to Eric Gebaide, managing director of Investment Advisors, a New York investment firm. The M&A [...]
Original post by NewsNetPlus search for internet and software by Elliott Back
