Internet data Blowout will push technology industry mergers and acquisitions

Introduction: Foreign media February 6 commented that the significant increase in data volume on the Internet will further aggravate the technology industry mergers and acquisitions tide. Companies such as Cisco, IBM, Google and Hewlett-Packard will increase mergers and acquisitions in an effort to enhance competitiveness in data storage, analytics and security services.

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Cisco, the world's largest maker of networking equipment, reckons that by 2015 the data generated every 5 minutes on the Internet is equivalent to the amount of data contained in all films. How to manage these data will be a hot spot in the tech industry, which will drive 2012 of years of technology acquisitions.

Cash-rich technology is poised to overtake the $200 billion trillion in mergers and acquisitions of 2011, in an effort to turn data flows into profits. Companies that carried out mergers and acquisitions in 2011, including Cisco and IBM, want to enhance their capabilities through mergers and acquisitions to further provide new storage, analytics and security services for corporate users.

The emergence of large data, mobile and cloud technologies will drive technology companies to invest aggressively and make major decisions in this area, according to a recent report by IDC, a market research firm. Digital information on the world's Internet may be 2.7 ZB this year, up to 8 ZB by 2015, the equivalent of 2.7 billion Apple imac storage.

Jon Woodruff, co-head of technology investment banking at Goldman Sachs, Luffy that the pace of technological innovation does not allow participants to miss a step, and that each tool must be used to improve speed and flexibility, and mergers are one of the key tools.

Technology companies have plenty of cash and are under pressure to increase sales, all of which are driving deals. According to data from the Morgan Stanley index of 35 companies, the amount of cash held by these companies increased by 21% to $513 billion last year.

Active acquisition

Big companies will dominate the wave of mergers and acquisitions. Data show that last year's technology sector mergers and acquisitions increased by 36%, Hewlett-Packard, Google and Microsoft, which accounted for the main impact, and the world last year, the overall volume of mergers and acquisitions increased by only about 4%.

One of the biggest deals last year was that HP agreed to buy autonomy for 10.3 billion dollars to boost its software business and reduce the size of its PC production. Although some investors are not bullish on the acquisition, the move allows HP to provide corporate clients with database search services and other cloud-related services. Whitman, Hewlett-Packard CEO Whitman, said last November that HP did not have a big corporate merger plan for 2012 years, and only a possible merger of small software businesses.

Cisco has completed about 150 acquisitions in its corporate history, with a cash balance on its balance sheet showing $44.4 billion trillion. Cisco announced last November that it will continue its active mergers and acquisitions in the technical field.

Cloud Power

Chet Bozdog, global head of the bank's technology investment business, said the Chet Bozdog of the technology industry this year could exceed the level of last year and 2007.

Data show that the 2000 technology industry mergers and acquisitions reached 585.2 billion U.S. dollars, record levels. The 2007 merger deal was 264 billion dollars, the highest level since 2000.

Bozdog says the integration of hardware, software and services will continue to add new products to the sales chain. Cloud computing allows companies to access information from external data centers via the Internet, as well as the migration of desktop applications to mobile products, Drago Rajakovic Drago Rajkovic, head of technology acquisition at JPMorgan, which will be the trend in the coming years.

As part of this trend, SAP, the world's largest business management software, successfactors a 3.4 billion-dollar acquisition of talent solution providers last December in the hope of enhancing cloud business.

Google Acquisitions

Google last August announced a 12.5 billion dollar takeover of Motorola Mobility, one of Google's largest deals. Through acquisitions, Google has acquired mobile proprietary technology and expanded its hardware business. In an attempt to overtake Google in online advertising and compete with Apple in the mobile software sector, Microsoft last October bought Skype Technologies, the internet phone company, for 8.5 billion dollars, the largest acquisition Microsoft has done in more than 10 years.

Google and Microsoft are completing acquisitions in cash, which do not have a significant impact on the company's financial strength. Microsoft's latest filing showed that the company's cash and cash equivalents rose 41% to $51.7 billion a year earlier, while Google's cash rose to $45.4 billion, up 28%.

The 0-dollar company has the most cash reserves in the technology industry, up to $97.6 billion trillion. Apple said January 24 It is discussing a variety of cash-use options and will also consider acquisitions.

Rajakovic says technology companies are flush with cash from other industry companies and low debt ratios make it easier for technology firms to boost growth through acquisitions.

Valuation decline

The increase in cash from big tech companies makes it more feasible to acquire some potential targets, with valuations falling. F5 NX, the world's leading provider of application delivery, grew 31% in sales, but shares fell 18% in 2011. Network equipment provider riverbed Marvell revenue increased 32%, but its share price fell 33%. ACME packet sales rose 33% last year, while the share price still fell 42%.

Arry Sonsini, founder of law firm Larry Sonis, said that as valuations tended to be more reasonable, more technology companies would join the ranks of mergers and acquisitions, which would grow further this year.

Some investors in these companies are beginning to lose patience, affected by the fall in the company's share price. Third Point, the hedge fund company, last year acquired a 5.35% per cent stake in Yahoo and asked for two board seats, as well as its co-founder, Jerry Yang, to launch the board. People familiar with the matter said last month that Yahoo was negotiating a sale of shares in Alibaba Group and Yahoo Japan.

Last November 18, activist investor Lalf Whitworth Ralph Whitworth into HP's board of directors, whose company relational investors bought 17.3 million HP shares, while HP's shares fell 39% last year. In contrast, Boko shares rose 7.5% per cent last year as news of the company's sale continued. Elliott Management holds a 7.5% stake in the Bo division.

Goldman Sachs, Luffy, said last year's merger was over 2010 years, and the size of the deal is expected to be flat or slightly higher this year. Leisurely)

(Responsible editor: The good of the Legacy)