IBM plans India acquisitions
IT sector is all set to rock India Inc’s merger and acquisition overdrive in 2007, involving none other than the world’s largest computer services IBM. IBM had spent nearly $5 billion in 2006 executing 13 acquisitions in 2006. The company soucrces are still not ready to speak about the potential targets and investments. As per sources close to the deelopment targets could include small to mid sized software firms.
Merchant banking sources said that the firm could strike deals close to a billion dollers in the next few months in the software space. The The US based IT giant is believed to have sounded its investment bankers to scout for petential targets in the country, which could include small-to-mind sized software firms, although it is not averse to acquiring large companies at the right price.
IBM’s potential targets are unlikely to include listed firms as the firm considers them as overvalued following the sharp rally in IT stocks over the recent past. IBM said its shareholders through a regulatory filing last week, that it plans to continue the accelerated pace of acquisitions in 2007.
IBM has invested nearly $16 billions in over 60 acquistions in the past five years, taking it the most acquisitive company in the technology space. The company’s acquisitions in 2006 were in the software space, an area where IBM is bullish about growth prospects in future as well.
While the company is tight-lipped about its targets and investment lined up for inorganic expansion, merchant banking sources close to the development said that the company could strike deals close to a billion in the next few months in the software space.
IBM said in its regulatory filling that the the company invested broadly in research, product development, skilled resource, manufacturing capacity, strategic alliance and acquisitions to deliver higher value solutions ot their customers.
