Power surge promotes M&A hot spot

Article Abstract:

The information technology (IT) industry is experiencing record levels of acquisition activity. The number of major IT acquisitions increased by 26% in 1997 to a record high of 532, worth 12.1 billion pound sterling. Compaq's 1998 purchase of Digital Equipment for 5.8 billion pounds sterling is IT's biggest-ever acquisition, and represents a trend for diversification amongst the major players. The acquisition pattern looks set to continue due to factors including consumer demand for product compatibility and the drive to acquire service capabilities and to address skills shortages.

Forecasts and trends

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Record M&A in the technology sector

Article Abstract:

The value of worldwide merger and acquisition deals in the communications, information technology and media industries reached a record $488.8 billion in 1998, from $261.9 billion in 1997. There were 4,785 transactions, from 4,513 in 1997. In the telecommunications sector, most investment took place in wire-line and cable access operators. The number of deals in the electronics and hardware sector in Europe declined to 217, from 237, but values more than doubled to $25.1 billion.

Prepackaged software, Computer Software, Software Publishers, COMMUNICATION, Communications, Broadcasting and Telecommunications, Acquisitions & Mergers Analysis, High technology industry, Computer software industry, Software industry, Software, Telecommunications services industry, Telecommunications industry, Statistics, Financial analysis

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Determination drives the deal: half-way through pan-European negotiations, a joint venture became a takeover

Article Abstract:

Kalamazoo was to acquire a substantial interest in the Datapoint Motor Trade business, which supplied computer solutions to motor dealerships, mostly Ford. Kalamazoo was offered a joint venture to hold 51% of the equity, with the possibility of purchasing the remainder in the future. Wragge & Co led an international team of law firms to structure the acquisition agreement and it was decided that a complete takeover of Datapoint would be the best way to make the deal work

Datapoint Corp., Kalamazoo Co., DPT

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