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Posts Tagged ‘technology transfers’

Here is some good market analysis in regards to topics we covered earlier in the week by way of ITWorld.

“September 17, 2009, 07:33 PM —  IDG News Service —

Optimism about IT helped boost stock exchanges to 2009 highs this week as tech-sector mergers and acquisitions and news about improving demand for hardware buoyed investor confidence.

The tech-heavy Nasdaq Composite index hit 2133 on Wednesday, its highest level for 2009, well above the 1630 mark at the start of the year and its low of 1268.64 on March 9. Nasdaq computer stocks were up 50 percent for the year, while Nasdaq telecom stocks were up 48 percent for the year. The broader Dow Jones Composite Index was up 10 percent for 2009.

M&A activity has fueled investor excitement about the tech sector. While the recession has killed the market for leveraged buyouts and private equity deals this year, there has been a steady stream of acquisitions among tech companies, many of which have large coffers of cash.

In one of the larger tech deals announced recently, Adobe said late Tuesday it will acquire Web analytics company Omniture for US$1.8 billion in cash. Adobe said it will incorporate Omniture technology into its own Web-development and document-creation products. Adobe is paying a 45 percent premium over Omniture’s share price, which may account for the immediate reaction to the deal: Adobe shares slipped by $2.27 to close at $33.35 Wednesday.

However, M&A often stokes investor excitement because it is seen as a sign of industry confidence in certain technologies. Vendors will buy companies in order to quickly ramp up in areas of technology that they believe are taking off.

For example, Intuit — the leading personal finance software developer — on Monday announced it would pay $170 million for startup Mint.com. Though Intuit has successfully battled Microsoft Money for years, the company has not had a response to various Web-based financial tools that have sprung up lately. Mint offers free tools to help consumers gather and analyze personal financial information. While Intuit shares dipped by $0.07 to close at $27.78 Tuesday, they bounced back up to $27.89 Wednesday.”

Read the complete article here.

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