Mergers and Acquistions News
Categories: IT Services & Consulting
February 13th 2009, 15:59PM
The IT sector can be expected to buck the economic downturn by pursuing acquisitions, an industry expert says.
According to Peter Rowell, executive chairman at IT corporate finance specialists Regent Partners, large IT firms are sitting on huge reserves of cash and will be looking to invest.
Mr Rowell argues that of the ten companies with the largest equity reserves, some may favour prudence, while others will be looking for acquisition targets.
"[The] companies that they've been looking at for sometime are getting cheaper by the day so they are just waiting to pounce on these companies when they think valuations have bottomed out," he states.
Despite the well-publicised problems in the credit markets, Mr Rowell comments that there is no shortage of equity to pursue deals, with estimated reserves of $500 billion (£350 billion) in the global private equity industry.
Figures from Regent found that there were 2,941 acquisitions involving European technology companies in 2008, down nine per cent from the 3,215 deals announced in 2007.
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