Has anyone else noticed this trend of late? It appears as if corporate acquisitions have become the new black.
After a hiatus, Google is also back in the M&A game. CEO, Eric Schmidt told Reuters Television:
“Acquisitions are turned on again…and we are doing our normal maneuvers, which is small companies. My estimate would be one-a-month acquisitions and these are largely in lieu of hiring.”
Google acquired On2 Technologies last month and reCAPTCHA last week. MeetTheBoss has a subway-style map of the company’s acquisitions (thanks TechCrunch) – this may prove useful if you are trying to figure out their M&A strategy.
After a break of almost a year, Adobe turned on the spigot last month with the acquisition of start up Australian hosting and ecommerce company, Business Catalyst. They then fronted up for a billion dollar deal by acquiring Omniture, a web analytics business.
How can we forget Oracle’s billion dollar acquisition of Sun Microsystems last month.
Microsoft’s only acquisition so far this year has been BigPark, a Canadian interactive gaming company. Before this deal they had last made an acquisition this time last year.
IBM has kept up a steady pace in recent months acquiring Exeros Assets, a data discovery software company in May, both statistical analysis software developer SPSS and source code analysis company Ounce Labs in July and Singapore-based analytics and optimisation business Red Pill Solutions this week.
So, what does this mean for entrepreneurs and their financial backers?
Investors typically focus as much on the potential exit as they do on the team, the technology and the market when they are deciding whether to bring a company into their portfolio. Knowing that the corporate development VPs are once again actively scouting for deals for their companies will be comforting to venture capitalists and their limited partners. They will become more active in growing their portfolios again.
As a result the entrepreneurial economy or ecosystem will be sufficiently lubricated to begin grinding its gears and tending towards a state of equilibrium.