By
Mike King
A sure sign that the technology industry recovery is well underway comes from the level of mergers and acquisitions we’re now starting to see. Last week’s announcement that Johnson King client PGP is to be acquired by Symantec though not particularly welcome from our point of view (a client acquired is more often than not a client lost) is a good illustration of how technology industry consolidation is gaining momentum.
There’s been a big increase in the number of acquisitions since the turn of the year. According to the National Venture Capital Association in the US, Q1 2010 saw the highest number of venture backed companies being acquired since their records began in 1975.
It is a similar story when it comes to IPOs. Though nowhere near the level of the late 90s, they are also on the increase. And there are plenty of others ready to go, including our very own Force10 Networks, a company that announced its plans to IPO back in March.
Of course, all this financial activity is good news for the tech PR industry. It increases levels of VC funding because realistic exit routes once again exist. And well funded companies look to invest in developing their markets and deliver sales growth to increase their value.
As the Wall Street Journal predicted when Force10 announced its IPO plans, if Force10 is successful, the flood gates will open. Here’s hoping there are good times ahead.
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