M&A market shows some signs of life in tech sector - Boston Business Journal:

vlastaowibopaj.blogspot.com
“Yes, the activity has picked up, but the pickupp has been from zero,” said Stevwe Ingram, leader of Deloitte & Touche’ws New England venture capital practice. “Therse is a lot of interest from the venturer capital community to sell these companiesand there’s interest from largd technology firms to acquire new The recent activity is significant in comparisob with the eerily quiet first quarter. Technology M&A deal volumr in the United States plummeted to 14 dealsd worth a totalof $3 billion, compared with 55 dealzs worth $13 billion in the firsty quarter of 2008, accordingy to a report by PricewaterhouseCoopers LLP.
A resurgence of the M& market is critical for the healt ofthe venture-backed startup ecosystem, which relies on a steady flow of exit opportunitiew to provide fresh capita l to new ventures. But some investors say the market is stil l too weak to get a decent return on an and a true resurgence is aways away. “ I think there’s a lot of false positivd data,” said Michael Greeley, general partnere of FlybridgeCapital Partners. “I think the markegt is improving, but all the leverage in the negotiationds is still withthe buyers.
” In the recent activity has been limited to what are called strategic acquirerzs — large IT firms such as , and that have vesterd interests in purchasing smaller firms working on small parts of theitr product offering. Many of these entities are sitting on large cash reservez and have been waiting for stability in the equit y markets to go aheadwith deals. In the last several Hopkinton IT infrastructure giant EMC purchasedColoradl Springs, Colo., server configuration softward firm and made an unsoliciteed offer for Sunnyvale, Calif., data de-duplication software firm the Redwood Shores, Calif.
, enterprise software firm with a majod presence in Burlington and Cambridge, also made several large purchases in recenf weeks. Last month, it acquired Lowelk virtualization technology company Virtuapl Iron for an undisclosed sum and outbidx forSun Microsystems, which employs hundredss of engineers in Burlington. The signs of a real resurgencein M&sA activity, onlookers say, will be found in deals made by middle-market technology firms as well as privater equity buyers, both of which have been scant for more than a Looser credit will be the key for thoses groups to start shopping.
“On the large buyouts the prospects stilllook murky” for a near-term recoveryu because of poor access to credit, said Jim Westra, managinh partner of Weil, Gotshal Manges LLP’s Boston office and a membeer of its private equity and M&A practices. But Westrz said he does believe growth capital dealsw will be more numerous as the economy stabilizes and seller expectation scome down. “It’s not going to be as robust as it was a fewyearss ago, but ...
I am sanguine that theres will bea recovery,” he