M&A Consolidation Continues to Alter the Tech Landscape

By Gina Roos

Software transactions accounted for nearly half the deal value of mergers and acquisitions in the U.S. tech sector in the third quarter of 2013, according to a new report from PwC. The IT services and hardware sectors also saw some major deals as well as some major transactions related to cloud technology. For channel companies, this means both opportunities and risks, according to Rob Fisher, PwC's U.S. technology industry deals leader. Consolidation across the entire ecosystem—hardware, software and services—has dramatically upset relationships in the past decade and led to increased competition, business disruption, the need to invest in new service capabilities and pricing pressure, said Fisher. As larger tech companies acquire new capabilities, products, and services, new sales opportunities arise for channel partners, but they will likely have to invest in managed services or value-added services around the new products. Channel Insider takes a look at highlights from the PwC report.

This article was originally published on 2013-11-06
Gina Roos is a business and technology writer who has contributed print and Web articles to leading electronic industry publications. She was Editor-in-Chief at Electronics Sourcing North America, and served as Site Editor for UBM's Green SupplyLine and Electronics Supply & Manufacturing Websites. She also authored the "In the Channel" column, covering the electronics distribution industry for EETimes ProductWeek. Gina was the founder and editor of Electronics Advocate, an online magazine covering design and supply chain issues in the electronics industry. The publication was sold to MMG Publishing UK in 2010. Gina has a degree in journalism.