Sizing Up the Impact of IT Mergers & Acquisitions
No solution provider in the channel likes to wake up one morning to discover one of its major vendor partners just got acquired. The channel should take note of a recent PwC report that finds that merger and acquisition activity in the technology sector declined in 2012. However, the steepest declines from a percentage point of view were in the IT services sector, which suggests that interest in the IT services companies that make up the channel may not be as high as they should be. In terms of the vendors with which the channel does business, the greatest amount of activity continues to be in the software sector. Yet, while the hardware and networking sector also saw the same drop in deal volume as every other category, the value of those deals was considerably higher in 2012. Just to confirm what everybody in the channel already knows: IT spending growth in 2012 was basically flat year-over-year. The PwC report points to forecasts for increased IT spending in 2013. "Even if 2013 is similar to 2012 in terms of declining deal value, there will no doubt be some exciting deals that will shape the technology landscape over the course of a year," the report states. Here, Channel Insider takes a look at PwC's findings.