IT M&A Values Tumble in Third Quarter

by Ken Schachter on 31 October 2008, 12:43

Categories: Archives - Computers - General news - Media - Internet - Finance
Topics: it , m&a , merger and acquisition , updata advisors

 
Despite the market turmoil, the number of merger and acquisition deals involving IT companies ticked up in the third quarter. Valuations, however, plunged, according to a new report.

New York City investment bank Updata reported that there were 202 M&A deals involving information technology companies in the third quarter, eight more than in the second quarter.

Enterprise value of the deals, however, plunged to $15.3 billion, 51 percent lower than the $31 billion in the prior quarter.

Among the largest deals of the quarter was the acquisition of consultancy Axon Group by HCL Technologies and GL Trade by Sungard.

Enterprise value is market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.