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Technology takeovers may pick up in 2011

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CIOL Bureau
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NEW YORK, USA: Technology companies that fueled more than $100 billion in acquisitions last year are likely to spend more in 2011 in a race to harness surging demand for cloud computing and security services, said a report.

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Intel, Hewlett-Packard and International Business Machines led purchases of more than 2,700 companies and still spent only a fraction of the cash piles they accumulated during the recession, according to a Bloomberg report.

Citing a data compiled by it, Bloomberg said that the dollar amount of announced tech deals gained 12 per cent, lagging behind a 26 per cent jump in worldwide mergers.

Recovering from the global financial meltdown, Indian companies are also planning to expand their global footprint. Infosys Technologies had recently said that it was eyeing acquisitions in Japan in an effort to grow outside its main markets in the United States and Europe.

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The company could use as much as 10 percent of its revenue for acquisitions, CEO S. Gopalakrishnan said in an interview.

Business outsourcing company Quatrro had also said it was looking for acquiring companies in North America that offer services to medium-size business segment.

Bharti's acquisition of Zain was a major deal in 2010 where an Indian company really strengthened its global footprint. It is likely that the telecom major may expand further to other geographies, as the Indian telecom market is on the verge of saturation, especially in the urban areas.

And now, the plan by iGate to acquire Patni is another major news. Though the deal has been delayed due to some procedural issues, it is likely to be finalised next week.

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