Analysts and other sources suggest M&A could move into areas like e-commerce, enterprise intelligence, and web-based diagnostics, and have named CommVault (NASDAQ:CVLT), MicroStrategy (NASDAQ:MSTR), Open Text (TO:OTC), and RightNow (NASDAQ:RNOW) as prospects.
Digital technology firms will compete to acquire niche software groups well into 2011 as part of a expansion strategy they hope will seek and acquire recession-hit clients seeking recover and expand as well.
And with revenues returning to growth, they have pockets full of cash at their disposal.
Leading this trend is companies, such as IBM (NYSE:IBM) and Oracle (NASDAQ:ORCL), who are buying specialist software makers so they can offer more to corporate customers. It is reported that Oracle alone has spent more than $42 billion on acquisitions over the past six years, and it had $10.4 billion in cash at the end of November.
Basically, with revenues recovering, enterprises need to find a use for this money, and they are looking to place bets on emerging digital technologies.
One of the primary growth drivers is digital technology. Utilities, health, communication, and other industry sectors are rapidly evolving in complex and interconnected ways. This blog offers a unique perspective to compliment information on sites such as www.finance.yahoo.com, www.google.com/finance and money.msn.com.
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