Corporate deal teams, bankers and analysts say the technology sector could see lots of buying and selling over the next few quarters. (See related story.)
Signs of a boom are already evident. The value of global tech M&A has hit $104 billion so far this year, Dealogic data shows, a pace that’s on track to hit deal values not seen since 2007. The trend isn’t limited to technology. Global M&A as a whole has also hit a high not seen in seven years, with $1.4 trillion worth of deals announced this year.
“The weaker the stock market, the higher the probability that an acquirer can pick up good companies at reasonable valuations,” says Peter Goldmacher, a Cowen & Company analyst.
Here are six publicly traded companies in businesses where older tech companies are weak: cloud computing and ad-tech. They have strong revenue growth and low price to sales ratios. Market watchers say that these elements combined make them possible deal targets should we see an M&A resurgence.